Financial institutions focused on debt and money printing concerns: Mundhu
Government Spokesperson Mohamed Hussain Shareef (Mundhu) has attributed the Maldives' recent Fitch Ratings upgrade to ongoing fiscal reforms, while arguing that concerns among international financial institutions extend beyond the country's credit rating.
His remarks came during a press conference following Fitch Ratings' decision to raise the Maldives' sovereign credit rating from 'CC' to 'CCC-'.
During the briefing, journalists questioned why the government was highlighting the upgrade as a positive development when the country's rating remains below the level it held when the current administration took office.
The rating has been downgraded twice since then and has yet to return to its previous position.
Responding to the concerns, Shareef said the government was not excessively celebrating the rating change, adding that the issues affecting the country's financial standing predated the current administration.
The primary concern was not solely the Fitch rating, rather, it was a sentiment echoed in our extensive discussions with various financial institutions. Throughout that period, we repeatedly pleaded against the excessive printing of money, yet it was carried out on a large scale,
The spokesperson stated
The spokesperson argued that international financial institutions were more concerned about the previous administration's monetary and borrowing policies, including large-scale money printing and the accumulation of debt.
He maintained that despite the financial assistance received during the COVID-19 pandemic, subsequent economic decisions contributed significantly to the country's fiscal challenges.
Furthermore, additional debts and loans continued to be incurred until the very last moment. This trajectory led us to a saturation point, where our debt reached approximately 130% of our GDP a critically precarious level,
The spokesperson added
The spokesperson said the current administration is focused on reducing debt levels and strengthening fiscal discipline, adding that the latest rating upgrade reflects progress made through those efforts.
He also pointed to what he described as broader economic achievements, including managing government expenditure within approved budget limits and recording strong state revenue performance over the past year.
According to Shareef, these developments demonstrate improvements in the country's financial management and provide a stronger foundation for long-term economic stability.
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