Democrats urge swift cost reductions

The Democrats have declared that now is the time to decisively reduce costs, stressing that the only way forward is to expedite the necessary actions.

At a press conference, former Hulhudhoo constituency member Ilyas Labeeb criticized the MDP for failing to deliver on their 2018 promise to reduce debt. He argued that refinancing the debt won't solve the issue and insisted that restructuring is the only viable option.

He emphasized the urgency of taking swift measures to address the growing state debt, which has surged by MVR 56 billion under the previous government. He pointed out that even then, calls were made for debt restructuring.

"We submitted a resolution to the People's Majlis for this purpose. We worked closely with the government and put significant effort within the party. President Nasheed, in particular, was instrumental in pushing for this," he stated.

Labeeb expressed concern over the government's influence on BML's recent decision reversal. BML had initially halted dollar transactions from rufiyaa accounts and reduced the dollar transaction limit on credit cards from USD 750 to USD 100. However, this decision was later revoked following advice from the MMA.

"What we're witnessing is the President trying to run an independent bank as if it were a government department, which undermines the bank's credibility, especially with its international clients," he commented.

He further remarked that the actions taken yesterday amounted to a disregard for the Banking Act, the Companies Act, and the Corporate Governance Code.

To resolve the current situation, Labeeb urged the need to facilitate dollar transactions through banks, a responsibility he believes MMA should be addressing.

He also criticized the previous government's excessive money printing, which has flooded the economy with local currency. He stressed that this money must be quickly withdrawn and returned to MMA.

"That’s more local currency in circulation. We warned at the time that printing more rufiyaa would only lead to an increase in the value of the US dollar," he added.

Ilyas concluded by stating that MMA should take action, even without amending the law.