Speaker of the parliament and former President Mohamed Nasheed says the best thing to do given the current circumstances is to restructure the debt obligations from the years 2012 to 2018 without incurring more overdue fines.
In a tweet, Nasheed said the most dangerous aspect of loans is that being unable to generate enough economic activity when it comes to loan repayment.
He pointed out that the grace period for most loans taken between years 2012 to 2018 is now over and the administration of Ibrahim Mohamed Solih is now obligated to fulfill these crushing debt obligations.
Nasheed said that state revenues are almost non-existent and debt obligations would be ever high between the years 2021 to 2023.
In light of this, the best way forward he said is to restructure the loan/debt obligations from the years 2012 to 2018 without further fines.
Meanwhile, Chairman of Cyryx College Ahmed Shareef said today that the greatest danger of taking a loan is when officials resort to undertaking such financial obligations but fail to repay the loans on time as they are not doing anything to honor the repayment table.
He said via twitter that the danger is more evident when officials are left pointing their fingers at each other and blaming one another for the debt accumulation.
