Economic challenges temporary, no IMF assistance required: Zameer

Minister of Foreign Affairs Moosa Zameer has stated that the current economic challenges facing the Maldives are temporary and that the country is unlikely to seek assistance from the International Monetary Fund (IMF).

Speaking to reporters during his visit to Sri Lanka, where he is accompanied by Minister of Finance Dr Mohamed Shafeeq to meet with the Central Bank and other officials, Zameer said that the Maldives has international partners who are prioritizing support for the country.

"We have bilateral partners who are very sensitive to our needs and our situation," Minister Zameer said during a press conference held last night.

"I seriously don't think it is a time where we will be right now engaging with the IMF... The issue that we have is very temporary because currently we are having a dip in reserves."

He added that liquidity is expected to improve as changes to taxation and cost cutting measures in state owned companies are implemented.

Minister Zameer also spoke about the relationship between the Maldives and India, adding that the “misunderstanding” between the two countries has been resolved following the repatriation of Indian troops from the Maldives.

"At the start of our government, we did have some rough patches [with India], you know," he added.

“[We] have good relations with both China and India, and both countries continue to support Maldives,” he said.

Minister Zameer’s visit to Sri Lanka came days after Moody's Ratings downgraded the Maldives' credit rating by one notch to Caa2, considered a high credit risk. Fitch had also downgraded Maldives in June, stating that dwindling foreign currency reserves posed a financial risk.

However, the government remains confident in its ability to improve reserves and meet debt obligations.

Maldives reserves currently stands at USD 444 million, with usable reserves at USD 61 million.