Riyaz: Muizzu’s New Debt Exceeds Annual Loan Repayments

Former Deputy Minister of Economic Development Riyaz Mansoor has stated that while President Dr. Mohamed Muizzu claims to be settling outstanding loans, the amount of new debt he has incurred within a single year far exceeds the repayments being made.

Speaking on RaajjeTV’s "TV Talk" program, Riyaz stated that debt must be repaid within its designated timeframe. He emphasized that these obligations must be met by the specified deadlines, regardless of whether President Muizzu or any other leader is currently in power.

The next president, regardless of who they may be, will find that if they were to present a financial overview similar to the one provided by President Muizzu, the largest debt repayments they face would stem from the loans taken during this administration. Under standard practices, such as in corporate management, loans are typically not settled ahead of schedule; instead, they are repaid according to their established maturity dates. There is a significant strategic reason for this. By retaining that cash, a government maintains the financial flexibility necessary to fund operations, drive development, and execute key projects.

Riyaz Mansoor, former Deputy Minister of Economic Development

Riyaz stated that repaying a loan is not an achievement that warrants a President taking to a podium to deliver a presentation. He noted that debt repayment is a fundamental responsibility of any sitting president and represents the bare minimum a leader must fulfill for the nation.

Riyaz stated that claiming a specific amount of debt was repaid within the first year or year and a half is meaningless. He noted that a more meaningful assessment would be to examine whether the total debt has increased during President Muizzu's term and to determine the extent of that additional debt.

Therefore, debt repayment is typically managed through a structured long-term plan. The situation President Muizzu is facing arises because the sukuk issued during the MDP administration is due this year. Consequently, it must be settled. That is the reality of the matter. However, a president claiming credit for simply repaying a loan is unnecessary. Any president is obligated to service the country's debt; failing to do so constitutes a failure of leadership. Meeting debt obligations is the absolute bare minimum expected of a government. The national debt has increased significantly. Instead of addressing this surge, the President is focusing solely on the fact that payments are being made. But what is the actual benefit when the total debt is growing at a rate far outstripping the repayments?

Former Deputy Minister of Economic Development, Riyaz Mansoor.

He stated that the most significant challenge facing this administration is its failure to execute any development projects. Riyaz further noted that the government is attributing this lack of progress to the national debt as a pretext for their inaction.

Riyaz stated that despite President Muizzu’s claims of substantial debt repayments, the national debt is not projected to decrease even by 2026. He noted that the budget submitted to Parliament by the current administration confirms this trend. According to Riyaz, if the debt fails to decline this year, it indicates that the government is securing new loans equivalent to or exceeding the value of the sukuk and other loans repaid during the same period. He further emphasized that while the administration highlights its debt repayments, it has simultaneously taken out more loans within a single year than the total amount it has settled.