Minister of Finance Ibrahim Ameer has warned that debt restructuring would lead to selective default for Maldives.
Speaking at the Parliamentary Committee on Public Accounts regarding the economic and financial situation of the Maldives, Finance Minister Ameer said the country has managed its debt so far in a way that would not affect development projects. He noted a drop in international ratings would pose more difficulties for the Maldives to acquire loans and lead to a selective default that would hurt the country’s finances as well as the banking system and private sector.
Speaking further, Minister Ameer said the economic progress achieved by the Maldives post-pandemic is the result of continuing economic activities with the help of foreign loans amid the pandemic. He noted the GDP of the country is growing along with state income, with the economy expected to return to pre-pandemic levels by the end of the year.