The President also pointed to measures his government has taken to recover state debts. He revealed that the government had successfully recouped MVR 3.1 billion from various parties, contributing to a reduction in the overall national debt.
In a speech marking the Republic Day of the Maldives, Maldivian President Dr. Mohamed Muizzu outlined his administration’s efforts to stabilize the nation’s economy, rejecting the practice of printing money as a solution. He reaffirmed that his government has not resorted to printing new currency notes since taking office and will not do so in the future.
The Maldives is grappling with an economic crisis, and President Muizzu acknowledged the severe financial challenges inherited from his predecessors. He highlighted that the country’s national debt stood at MVR 120 billion, one of the largest debts in the nation’s history. Furthermore, the value of the Maldivian Rufiyaa had been undermined during the previous administration, which he claimed printed MVR 8 billion in its final five years in office, contributing to the depreciation of the currency.
“I promised not to print money. I have not printed money for 51 weeks and two days of my presidency, and I will not print money in the future either,” President Muizzu declared, stressing the importance of fiscal discipline.
The President also highlighted the cessation of deficit financing through money printing. His administration has instead focused on fiscal reforms, with next year’s budget being approved after consultations with international financial institutions. Muizzu indicated that additional amendments would be made to the budget, including revisions to the country’s subsidization system, health insurance program Aasandha, pensions, and the management of state-owned enterprises.
“Changes will be made to ensure that our systems serve the needs of the public more effectively,” he said, emphasizing that these efforts are part of a broader strategy to foster a more equitable society.
Recovering State Debts
The President also spoke of his administration’s plan to reduce wealth inequality by implementing policies that “take from the rich and give to the poor.” The 2025 budget has been designed with this objective in mind, aiming to improve the living conditions of all citizens. “With the support of the public and lawmakers, we will achieve this goal,” Muizzu stated.
In his speech, the President also pointed to measures his government has taken to recover state debts. He revealed that the government had successfully recouped MVR 3.1 billion from various parties, contributing to a reduction in the overall national debt. These efforts, he said, were part of a broader strategy to shore up the country’s finances.
Looking ahead, President Muizzu outlined a seven-year vision for the country, which includes boosting the Maldives’ Gross Domestic Product (GDP) to USD 10 billion. He stressed that the 2025 budget would focus on increasing productivity and generating wealth for the population.
Since assuming office, Muizzu’s government has already released MVR 6.6 billion to the public, including settling bills under MVR 5 million owed to vendors. Furthermore, the Sovereign Development Fund, which stood at just USD 2 million when the government took office, has now grown to USD 78 million.
Muizzu emphasized that the fund is being managed carefully, with deposits and withdrawals made as necessary to support key projects. “We are committed to ensuring that the fund grows and can be used effectively for the benefit of the country,” the President concluded.
