Opposition expected government to go bankrupt in three months: Saeed

Minister of Economic Development and Trade Mohamed Saeed said last night that the opposition Maldivian Democratic Party (MDP) expected the government to go bankrupt within three months and had hoped to regain power.

Speaking on state media PSM's "Hafthaa 52" programme, Saeed said that the Maldivian Rufiyaa has depreciated significantly after the previous government printed nearly MVR 8 billion.

He added that, despite this situation, President Dr Mohamed Muizzu has committed not to print more money to stabilize the economy.

"They [the opposition] thought the country would go bankrupt within three months. People like Abdulla Shahid expected that, within three months of President Muizzu taking office, the country would go bankrupt, allowing them to return to power," Saeed said.

The minister suggested that MDP initially anticipated the country’s bankruptcy by March this year but was surprised when it managed to endure an additional three months.

He added that the opposition has been promoting the idea that the Maldives is on the brink of bankruptcy, citing downgrades by the World Bank, Fitch, and Moody's as evidence.

"Certain individuals were eagerly celebrating the potential of the country going bankrupt," he said.

Despite these predictions, Saeed highlighted the government’s efforts to strengthen diplomatic relations and improve the financial situation. He pointed out that, over the past 52 weeks, the country has avoided bankruptcy.

World Bank has forecasted that the Maldives will see an economic growth of 6.3 percent to 6.5 percent next year.

Saeed said that foreign banks and institutions provided USD 565 million, or approximately MVR 8.7 billion, in aid during the Covid-19 pandemic. However, he questioned the spending of these funds, noting that government records indicate only MVR 4.2 billion was spent on pandemic-related expenses.

"What buildings have been constructed with the remaining four billion? Or whose accounts did this money go to? If these issues aren’t addressed, the public; both political and civil will not trust them," he said.

Saeed emphasized that, while the President does not intend to arrest political figures, action should be taken against those involved in alleged embezzlement of state funds.