The Muizzu administration pushed through a MVR 2.4 billion deal with the Pension Fund, in effect printing money, because it did not have enough to pay civil service salaries this month, government sources told Adhadhu on condition of anonymity.
The administration converted MVR 2.4 billion in Treasury bills into a long-term bond and received the funds late yesterday, over the objections of former Pension Board members, senior staff, financial experts, politicians, and the public.
The Ministry of Finance, the Maldives Monetary Authority (MMA) and the Maldives Pension Administration Office have issued no statements. Reliable sources confirm the money went into government accounts before evening.
How the deal moved
16 October 2025: reports emerge about the MVR 2.4b bond plan
20 October 2025: government publicly denies the deal is money printing
22 October 2025: Pension Board member Saruvash resigns
4 November 2025: Pension Office CFO Fajwa resigns
11 November 2025: Pension Office lists T-bills on the secondary market
10 December 2025: Pension Board member Ashraf resigns
1 February 2026: Pension Board chairman Inaz resigns
3 February 2026: Pension Board approves the bond conversion
4 February 2026: Pension Office CEO Sujatha resigns
5 February 2026: Pension Board member Maadhin resigns
23 May 2026: Majeed appointed Pension Office chairman
23 July 2026: bond deal finalised, funds paid into state accounts
Economists say the deal is money printing done through a legal gap. The MMA cannot lend to the government to cover running costs, so the money went through the Pension Office instead. Analysts say moving central bank liquidity to the Pension Office for the government to spend does exactly what direct printing by the MMA would do.
The government and the current Pension Office leadership say this is an investment, not money printing, and that it will diversify the fund's portfolio and bring in foreign currency.
Experts and the board members who resigned say putting unbacked money into state payrolls will do damage.
"Using this money to cover salaries floods the economy with Rufiyaa, weakening local currency value, intensifying USD demand, and driving up inflation. The worst consequence is that soaring prices will wipe out any nominal returns promised to the Pension Fund." Local financial expert
Analysts expect inflation and a sharp rise in the cost of living once the money reaches the market.
