Pension Fund Bond Transaction
3 articles
ColumnThe Pension Fund Is Not the Government’s Wallet
The Maldives Pension Administration Office has begun a MVR 2.4 billion bond transaction that effectively transfers funds to the state treasury via the central bank. While technically legal, critics argue the maneuver exploits legal loopholes to use pension assets for government spending, bypassing the spirit of fiscal responsibility laws.
NewsGovernment prints money through pension fund to cover salaries
The Muizzu administration bypassed legal restrictions to secure MVR 2.4 billion from the Pension Fund to cover civil service salaries. Experts warn this maneuver effectively prints money, risking high inflation and currency devaluation. Despite government claims of a strategic investment, critics fear severe long-term economic damage.
