Economic Minister Mohamed Saeed has assured that Maldives will not go bankrupt.

As the country's financial situation deteriorates, financial institutions have warned that Maldives will go into debt if it does not reduce spending. The government is now taking measures to cut costs.

Speaking at a gathering of the ruling People's National Congress (PNC), Saeed said Maldives will not go into debt and the country will move forward. He also claimed that the country's GDP will continue to grow under the leadership of President Dr. Mohamed Muizzu.

"The arrangements for paying USD 400 million and another USD 1 billion are being made in a way that would not burden the hearts of the people and without creating obstacles for businessmen. This country will not go bankrupt. This country will move forward," he said.

He added that the government's discussions with Fitch and Moody's and the measures being taken by the government will increase the country's rating significantly.

"What did President Dr. Mohamed Muizzu do to lower the credit rate? What did he do in six months that would cause the credit rate to go so low? The governments, especially the last government, acted irresponsibly to create this situation for Maldivian businesses," he stated.

Saeed claimed that Fitch downgraded the Maldives' rating to CCC+ as a result of money printing. He added that this creates challenges for Maldivian businessmen to access development finance.