Maldives' economy was imperiled, have trust that development will not be delayed: President Dr Muizzu

President Dr Mohamed Muizzu has stated today that the country was put at serious economic peril by the time he had assumed office. However, he assured that his administration would overcome this and bring about development without much delay.

Speaking to residents of Maradhoo Feydhoo on his first trip to Addu since he was sworn in, President Dr Muizzu shed some light onto the economic status of the country when the former Maldivian Democratic Party led administration left office. He revealed that the current administration had inherited government debt amounting to approximately MVR 120 billion.

The President said that this is a far lower economic situation than the country has ever fallen to previously.

President Dr Muizzu assured that measures are being taken to alleviate the issues and development will be brought without interruption. He appealed to the people to place their trust in him.

The President stated that the reason for behind the current economic struggles is largely the previous government's tendency to take major loans in dollars.

"120 billion [rufiya, in debt] is the economic status we inherited. I am astounded that those who put us in this position are attempting to portray things as if it were some other way," the President said.

The President granted that loans are necessary for governments to function, however, he noted that the problem arose when this is done in a manner that poses no benefit at all to the citizens. He alleged that the previous government had taken loans in manners that did not benefit any Maldivian citizen in any aspect.

"So in addition to there being no benefit to the Maldivian economy, the citizens were also not made more prosperous," the President said.

President Dr Muizzu emphasized the China-Maldives Friendship Bridge as a project completed by then government under a loan that proved to be highly beneficial to many Maldivian citizens.

He maintained that even in future, the government would prioritize taking loans in a manner that will rejuvenate medium enterprises.

When taking loans, ways will be explored to structure repayment in a way that is divided over a long term, and in small installments, or in another such feasible manner, the President explained.

"There are no loans that don't align with this even amongst the agreements we recently signed with China," he assured.

Speaking about the Addu Bridge, the President accepted that it was his most major presidential campaign pledge to the atoll and informed residents that the designing work will be completed and physical work on construction will be commenced within the year. He promised that he would not put off the project until the final days of his term, and that instead, will aim to complete it at speed.

"We will build economic stamina, and then economic development, and so continue the work," he said.

The President admitted that some difficult steps will inevitably need to be taken owing to the current economic status. He reiterated that, as he said in his campaigns, he still believed it is imperative to stop printing money, as he believes that printing money is a surefire way to increase debt and as such, increase the burden on the people.

President Dr Muizzu also shared with those gathered that he had met with the IMF Managing Director during his recent trip to Dubai. He shared that she, too, concurred that ceasing the printing of money would contribute to healing the economy.

"This means that the economy will keep advancing. Thus, I call on the citizens to trust this process. To give us the opportunity to carry out these efforts and to place your trust in us. Development will proceed. We will not delay it."

The President also spoke at length about his administration's plans to adopt a system of targeted subsidies. He also highlighted that efforts are being made to deal with the debts carried by state owned companies.

After completing his visit to Addu, President Dr Mohamed Muizzu will also be visiting Fuvahmulah and several islands in Gaafu Alifu and Gaafu Dhaalu during this trip.