Foreign Minister Moosa Zameer met with the Chairman of China EXIM bank and briefed him on the latest fiscal and economic updates and also on the reform programme announced by President Dr Muizzu during his visit to China.
Chinese President Xi Jinping believes the Maldives economy is facing temporary issues and has assured all necessary assistance, said Minister of Foreign Affairs Moosa Zameer.
Minister Zameer, along with Finance Minister Dr Mohamed Shafeeq and Minister of Construction and Infrastructure Dr Abdulla Muthalib, visited China last week for extensive talks with Chinese officials. President Dr Mohamed Muizzu also sent a special letter to President Xi Jinping.
During the visit, Zameer stated that President Xi responded positively to President Muizzu's letter, assuring all necessary assistance to the Maldives.
"[Chinese President Xi] has informed the President that China will do everything it can to help the Maldives overcome these [economic difficulties] and that the technical works will be carried out from now on," Zameer said.
At the Independence Day ceremony, President Muizzu announced that the Chinese government has agreed to defer the repayment of loans taken by the Maldives through the Exim Bank for various development projects for the next five years.
Speaking with Aslu TV, Minister Zameer highlighted that other countries acknowledge the steps taken by President Muizzu to solve the Maldives' economic problems. He noted that India has also been very supportive, deferring USD 50 million in debt to the Maldives.
"India is very sensitive to our difficulties. India has a neighborhood first policy and has been extremely helpful during times of difficulties and we get the advice and guidance we need," Minister Zameer said.
The purpose of deferring debts is to diversify the economy and open up new sectors with the 'space' available, Zameer explained, referencing President Muizzu's Independence Day speech.
Had the pleasure of meeting with the Chairman of China EXIM bank, Mr. Wu Fulin, in Beijing. Briefed him on the latest fiscal and economic updates and also on the reform programme announced by President Dr @MMuizzu.
— Moosa Zameer (@MoosaZameer) July 23, 2024
Discussion was focused on financing key development projects… pic.twitter.com/sLBHmxX4Au
Zameer criticized the previous government, led by former President Ibrahim Mohamed Solih, for economic mismanagement, resulting in inherited financial difficulties. He said Finance Minister Shafeeq and other related ministers are constantly 'firefighting' these issues.
During the visit to China, Zameer met with heads of Exim Bank and other Chinese banks to identify areas where the Maldives needs assistance to overcome economic difficulties.
Zameer also pointed out that nothing was done to recover money owed to the state during the previous government. President Muizzu revealed that the state is owed USD 513 million due to past negligence.
Minister Zameer mentioned that a recently bankrupt airline from a neighboring country owed the Maldives USD 4.5 million, highlighting inadequate collection procedures under the previous government. He criticized the Maldives Inland Revenue Authority (MIRA) for irregularities in recovering state dues, noting that management changes during the MDP government allowed direct authority of the finance minister.
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