This government will not print currency in an irresponsible manner: Nazim

Deputy Speaker of Parliament and MP for Dhiggaru Ahmed Nazim has said yesterday that even if this government prints money, they will not do so in an irresponsible manner.

In yesterday's meeting of the parliament's Public Accounts Committee, Nazim alluded that the previous administration led by Maldivian Democratic Party (MDP) had acted irresponsibly in printing money, stating that this government would not conduct any activities in such an irresponsible manner.

The committee was discussing yesterday the motion on dismissal of Deputy Governor of central bank Maldives Monetary Authority (MMA) Ahmed Imad.

In the meeting, opposition MDP MPs shared their concerns around MMA's plans to buy a plot of land from Hulhumale' for MVR 14 billion. The MPs appealed to seek details of this plan from the MMA.

In response to this, Nazim said that the when this year's budget was proposed, it was made clear that the government aims to reduce State debt to MVR 9.3 billion by the end of the year. With this, he said, he has confidence that the government would not take any actions that may jeopardize the chances of reaching this goal.

Nazim said that this government would not print currency in amounts that increase the amounts lost in circulation through repayment of debts.

"MDP government printed 8 billion and injected it. I am certain this government will not act in that way," he said.

"I can say this with absolute confidence. They are saying 14 billion, 20 billion, that's just talk to create public discord. This government will not do so in such an irresponsible manner. I am sure they won't," Nazim asserted.

Nazim said that the government has even as of now paid back a USD 150 million loan taken with a six percent interest rate, which comes to about MVR 2.5 billion. He assured that the government would not print currency and inject it into the economy in numbers that exceed this amount.

"The government has paid USD 15o million. They have found that much fiscal space. The government will print money in amounts that can be accommodated by this fiscal space. Now whether you write this in a newspaper or lie a thousand times, a lie will remain a lie. The amounts they are saying are absolutely untrue," he stated.

Nazim said that if the purchasing of the land earns revenue for the State, then then first thing the Finance Ministry would have done is to pay back the debt the government has to the MMA. He said that the government is heavily in debt to MMA, including loans taken during the 2004 tsunami.

While Nazim has said this, the new Fiscal Responsibility Bill which comes into effect in June states that MMA can issue advance funds to the government or print money to an amount less than 2.5 percent of total government revenue over the preceding three years. The government has to pay this back to MMA at the market interest rate within a maximum of 91 days or three months.