Speaker of the Parliament Mohamed Nasheed has called on the government to restructure the debt as he expressed concern over the economic downfall facing the country.
Speaking at the parliament today, Nasheed said that he had gone against MDP Parliamentary group whip line as the parliament had been unable to hold the government accountable for the current economic situation developing in the country.
Nasheed pointed out that in states like the Maldives, the trend of government-affiliated parliamentarians being overly supportive of the administrations has caused whole nations to go bankrupt.
He further noted that between 2012 and 2018, state-owned companies had mostly taken commercial loans and bond market loans.
He added that most of these must be repaid this year and next.
Nasheed said that this administration had taken on more loans while paying off these debts and that taking more loans goes against the MDP manifesto.
The former President also said that the government had said that it would not be a good measure to restructure the current debts as the government would be unable to sell bonds once it restructure its debts.
Nasheed insisted that the MDP manifesto recommended veering off the bond market and to push back debt obligations without taking on new commitments.
With this Nasheed said that in the current situation, the most important thing is for the government to restructure the debt and called on the administration to take the necessary steps.
Earlier this month, President Ibrahim Mohamed Solih assured that the Maldives’ economy is on a positive path, announcing that the country’s nominal Gross Domestic Product (GDP) is expected to surpass MVR100 billion in 2023 and GDP growth at 13 percent.
The President stated that revenue this year had exceeded earlier forecasts of MVR8.5 billion and reached MVR11.1 billion. Despite this growth, he warned that global economic uncertainties and rising commodity prices would inevitably impact the country’s economy, noting that the administration would be vigilant and steadfast in its response to the risks.