Government has stripped the financial system of its independence: MDP

Former Minister of Economic Development and Chairman of opposition Maldivian Democratic Party Fayyaz Ismail has said that the incumbent government has stripped the Maldives' financial system of its independence and autonomy.

Bank of Maldives (BML) yesterday announced changes to foreign transaction limits via their cash cards, which decision they later revoked after public outcry.

The decision was reversed after a meeting between the bank and the government yesterday. In a press conference held at the President's Office yesterday with four cabinet ministers, Minister of Economic Development and Trade Mohamed Saeed said that the bank had taken the decision in contravention to the advice and discussions that have been held with the government since last December. He said that efforts are ongoing to address the bank's concerns through central bank Maldives Monetary Authority.

In an extraordinary meeting of MDP's National Council held last night, Fayyaz said that it is 'nonsensical' to describe BML's decision as a 'coup attempt' taken without the government being made aware.

"No...how can a thing such as this be done without [them] knowing? It was talked about all over social media last night. Why didn't the Finance Minister and President attempt to find a solution for it? BML's Board of Directors has a majority of government-aligned members. They will vote as the government wants," Fayyaz said.

Fayyaz said that BML's decision had been reversed due to major outcry and enragement of the public, and that the government is attempting to place the blame entirely on BML. More concerning than this, according to him, is that the government has taken away the independence of the financial system.

"Putting political appointees on the boards of banks. That is a dangerous thing to do," he said.

"And today they've said BML changed their decision on his orders. MMA have come out and said this is what we ordered. This is very wrong."

Fayyaz said that it is dangerous to give signals to the world that the financial system lacks independence, especially at this time when the economy is in a vulnerable situation. Losing trust in the financial system would have major repercussions, he said.

While the government claims that huge loans taken during MDP's administration and their failure to abide by advice from financial institutes are what led to the economic difficulties being currently faced, Fayyaz accused the government of not having any foresight or solid plans to resolve these economic difficulties. Fayyaz asserted that as a responsible opposition, MDP has a major role to play in holding the government accountable.