Maldives not at risk of default: Finance Minister

Finance Minister of Maldives, Ibrahim Ameer speaking at the inauguration ceremony of the procurement guidelines and job classification framework for State-owned enterprises. | Photo: Finance Ministry

Malé, Maldives – Minister of Finance Ibrahim Ameer on Wednesday stated that the Maldives has no in debt servicing and is not at risk of default.

The Finance Minister has stated his while JP Morgan’s Emerging markets strategist Trang Nguyen flagged eight countries including Sri Lanka, Maldives, Bahamas, Belize, Senegal, Rwanda, Grenada, and Ethiopia are flagged as in immediate default danger.

Maldives cannot be levelled with countries like Ethiopia who are at risk of default … Since the economy is recovering post Covid-19

Finance Minister Ameer

The Finance Minister acknowledged that Maldives in crisis, however, it is being managed. The government plans to continue infrastructure projects with no cost-cutting measures, since they are either important for development or have already received foreign financing.

Minister Ameer stressed that even by the forecasts as recent as last week, the Gross domestic product (GDP) is at 13 to 18 percent in 2022. The Minister added that the gross and net reserve is better than it was in 2019 with USD 800 million available. In addition to tourism industry earnings, fuel subsidies are also expected to multiply by three to four times.