Maldives drops partnership with US firm to reform country's financial situation

The Maldivian government decided against proceeding with its earlier partnership with US independent investment banking firm, Centerview Partners, to resolve the country's current financial situation.

A senior Finance Ministry official said that the decision was made due to President Dr Mohamed Muizzu's recent travels, which led to progress in delaying and restructuring the country's debt.

"Because of this, the Finance Minister decided to manage the debt within the Finance Ministry with joint efforts from MMA, MIRA and the Foreign Ministry, instead of paying a foreign party. The decision was also made in consultation with the President,"

The official also said that it is a policy of the current administration to establish a proper system where these four institutions work together to manage the country's debt.

"The biggest reason behind this decision by the Finance Minister is to manage debt in a way that minimises expenses. The current Finance Minister [Moosa Zameer] made various efforts during his tenure as Foreign Minister to work with various countries to pave a way for this. This decision was made based on that as well," the official further added.

According to the official, the newly transferred Foreign Minister Dr. Abdulla Khaleel is also working closely with the Finance Ministry in efforts towards debt management.

The Centreview Partners, which Maldives initially planned to work with, was established in 2006, and currently provides financial assistance to multiple companies and countries across the world. It employs 60 partners and over 400 experts in the field.

As Maldives works towards rehabilitating its financial sector with a newly announced reform agenda, financial institutions are calling for expedited action.