With the economy crumbling, Nasheed calls on creditors to restructure debt

Former President and Speaker of the People’s Majlis, Mohamed Nasheed has expressed concern over the hefty amounts owed by the government in debt, stating that the risk of debts is not having sufficient funds to repay them.

In a Twitter post, the former president and Majlis speaker noted that hefty amounts were taken as loans by the former administration from 2012-2018 and that the incumbent administration is having to settle the debts for which the grace period has expired.

Stressing that the state’s income has significantly dropped, Nasheed noted that the loans are required to be paid between 2021-2023.

Nasheed added that he believes the best thing to do is restructure the debt settlement from 2012-2018 without giving chances for additional fines.

The speaker has been continuously expressing concern over the hefty amounts the former administration of now incarcerated ex-president Abdulla Yameen had taken as loans from the government of China during his tenure. The government of China has deferred the loan repayment period for the government of Maldives.

Recently, the Minister of Finance, Ibrahim Ameer stated that Maldives is engaging in discussions with foreign countries regarding loan deferment. Ameer noted that discussions are also underway with the countries that have offered loans in support of the government's Covid-19 response, at a time the country’s Gross Domestic Product (GDP) and overall productivity plunged greatly. Ameer added that discussions are also underway with creditors.

The minister noted that the country is facing numerous challenges due to the ongoing Covid-19 pandemic and that Maldives has participated in the G20 debt suspension initiative as well.

Minister of Foreign Affairs, Abdulla Shahid has also called on the G20 to extend their debt service suspension initiative until the end of 2021.