Economic situation that consecutive governments faced were incomparable: President

President Dr Mohamed Muizzu has stated that various developmental projects are being resumed, and the Maldives' economy is gradually improving over the months.

The President made these comments in an exclusive interview he granted to Mihaaru on Wednesday, notably his first interview since assuming office.

Speaking to Mihaaru, the President revealed that some projects which had been commenced by the previous government had come to a halt due to delays in providing funds. He said that those projects had been interrupted as the payments due to them had not been made by the time his administration had assumed office on November 17, 2023.

"Work on a sewerage system in an island may have come to a stop. We did not halt it. Rather, the contractors were not given the necessary funds and so are unable to proceed with the work. And what we are doing now is making payments for due bills such as that, and bringing the contractors back to work. Mobilizing them," the President explained.

"Projects in a lot of islands have been resumed through these efforts now."

President Dr Muizzu stated that it is an immense economic challenge to entirely halt printing money through debt monetization or public account overdraft, and still ensure the timely repayment of foreign debts. He affirmed that he had brought an end to the practice of printing currency as this led to adverse effects on the economy.

The President noted that with all these challenges being faced, it may not be possible to proceed everything at the maximum speed at present.

"However, you will now see the speed steadily increasing. The second month was better than the first month. The third month proved to be better than the second month. Now March, then April will show more improvement. By mid-year, God wiling, everything will be proceeding at fast speeds," he said.

Comparison must be between state of economy in 2018 and 2023

In this interview, President Dr Muizzu indicated that any comparisons of the economic situation must be made based on the economic conditions in 2018 when former President Abdulla Yameen left office, and in 2023, when then President Ibrahim Mohamed Solih ended his term in administration.

President Dr Muizzu stated that when former President Yameen finished his term in office and President Ibrahim Mohamed Solih assumed presidency, the Maldives' economy was significantly robust. As a result, the new government that came into office then was able to proceed with projects expeditiously.

"On the other hand, this time when we came into office, the economy was absolutely destroyed. There were billions and billions of rufiya in debt owed internally and externally. Hence, these are entirely different circumstances," the President said.

The President said that due to these reasons, this government is working to overcome the economic hurdles currently faced by the country, adding that the two situations were, in essence, incomparable.

"It would have been easy for us as well to go on at that swift speed through printing currency. We are going forward without doing that, unless we strengthen our economy, more investors also will not come in. When we came into office, there was no investor confidence in the country," the President said.

However, the President revealed that now new investors are expressing interest in the tourism industry, as well as other arenas. As an example, he pointed out the SEZ project. He highlighted that multiple parties had expressed interest in this project as well.

"This exhibits only one result. The economic enrichment of the citizens," the President said.

The President repeatedly emphasized the challenges faced in managing the economy while having brought an end to the practice of currency printing initiated by the previous administration. He noted that IMF and World Bank had also recognized that these are actions that would not have been taken by any other nation faced with similar situations as the Maldives had found itself in.

President Dr Muizzu asserted that he had brought a halt to currency printing while being aware of the challenges it will bring, but at the same recognizing that it would present long term benefits to the future of the Maldives.

"God willing, good results are coming through all of this," the President said.

Prices maintained, dollar rates decreased

The President indicated that it is a positive sign that even during the month of Ramadan, the price of goods in the market has been decreased, and inflation has been maintained at a steady rate.

President Dr Muizzu further pointed out that despite this being a period where demand for dollars is among its highest, the dollar rate is also being steadily decreased.

"The bills are being paid, and we are also paying overseas debts on time as well. Most recently, just yesterday [Tuesday], we have paid off the debts owed by the 19th [of March]. Hence, without printing currency, bringing down the dollar rate, maintaining prices in the market and decreasing it where we can, bringing new life to the economy, to be honest, this is a major undertaking," the President said.

The President stated that, in light of the economic situation, efforts are being undertaken under a priority schedule. In this, the highest priority is being given to debt repayment, and maintaining prices. Together with this, emphasis is placed on continuing with ongoing projects.