Maldives not facing situation that requires debt restructuring: Ameer

Finance minister Ibrahim Ameer.

Finance minister Ibrahim Ameer.

Finance Minister Ibrahim Ameer has said that Maldives is not facing a situation that requires debt restructuring.

The state debt has crossed the MVR 100 billion mark, resulting in opposition criticism and pressure on the government to cut spending.

But the finance minister said Maldives is not going into debt default as the economy is growing.

"Our economy was among the top five growing economies in 2021 and 2022. And, by the end of 2023, we are looking at two million tourists visiting the Maldives. So there is no need to restructure debt," he said on Adhadhu's 'Ethere Fuh' show.

Critics say debt restructuring will be an obstacle to Maldives' economic growth, he added.

"If we don't maintain the pace of our [economy's] expansion, it will stop. There will be huge shocks to the economy. We are already working on debt management in a way that is acceptable to the market," he said.

Ameer said he will continue to work to manage debt in a way that is acceptable to the market and assured that Maldives will be able to repay its debts within the due date.

"Maldives GDP will reach 170 billion by 2028. So the economy will also expand. There will be a lot of refinancing through a liability management exercise like in 2021 and paying part of it at once," he said about short-term debt management.

The national productivity will reach MVR 100 billion by the end of this year and that figure will double with the completion of major infrastructure development projects undertaken by the government, he claimed.

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