President Dr. Mohamed Muizzu stated tonight that this government has reduced the debt per capita, or debt relative to GDP, by 6.8 percent, and has also decreased the state's external debt.
Speaking at a rally held by the ruling PNC in Dh. Meedhoo tonight to celebrate the party winning all three seats of the island council, the President said that the USD 1.2 billion paid by this government to settle debt includes loans taken out during the administrations of five former presidents.
He utilized statistical data to counter allegations made by the opposition claiming that the money paid to settle debt included substantial debts taken out by the current administration. In doing so, he displayed statistics showing the debt-to-GDP ratios across various administrations.
"The total state debt stood at 123 percent when this government began, from 2023 [chart] then observe what happens up to May 2026, the total external state debt relative to GDP which stood at 123.6 percent, this government has brought it down to 121.2. We have reduced the debt burdened on the citizens relative to GDP," the President said.
While displaying charts and graphs, he stated that the USD 1.2 billion paid by this government to service debt includes debts taken out during the tenures of four former presidents. He also detailed the respective figures included in the amount.
"We have now paid USD 891 million from President Ibrahim Mohamed Solih's government. From the debts taken during President Yameen's government, USD 195 million is included within this USD 1.2 billion. From the debts taken during the two governments of President Nasheed and President Waheed combined within those five years, USD 62.5 million is included within this USD 1.2 billion, similarly from the debts taken out by former President Maumoon's government, USD 38.1 million is included within this USD 1.2 billion" the President said.
He stated that even after paying these figures, many millions of dollars still remain to be paid from the debts of those administrations. However, he noted that out of the settled debt, only four million dollars accounted for debt taken out by the current government.
