Economic Ministry cautions against rumors to safeguard financial trust

The government, on Saturday, urged the public not to spread rumors that may undermine confidence in the country's financial system and disrupt the efforts made by the government towards economic recovery.

Responding to reports on social media suggesting that the Maldives is facing serious financial problems and, as a result, the Maldives government has decided to participate in an IMF program, the Ministry of Economic Development and Trade said in a statement that such basesless rumors are being spread to undermine confidence in the country's financial and banking system.

“These are attempts to derail the significant economic and fiscal reforms initiated by the government," the statement said.

The statement assured the public that the reform agenda aimed at strengthening the economy will maintain confidence in the services and financial system.

The Ministry said that despite the financial constraints inherited by this government, foreign financial institutions have acknowledged that the country's economic growth is positive.

Therefore, at a time when the country is working to gain foreign confidence in the economy, it is been advised not to spread rumors that may hamper it, the statement said.

The country's current debt stands at MVR 124 billion, which is more than 100 percent of the country's GDP.

In addition to addressing debt, economists emphasize that the financial situation can only be restored by taking steps to decrease costs. Therefore, this year's budget has also planned important steps to ensure subsidy reform.

The recent visit by the World Bank's delegation also commended the government's efforts to reduce public spending and reform public finances.

In a statement, the delegation highlighted the decision to transition from the existing subsidy policy to targeted subsidies, enhance the functioning of Aasandha and state-owned companies, and implement PSIP projects in a prioritized manner.