China and the United Arab Emirates (UAE) have agreed to defer the repayment of loans extended to the Maldives by five years. The announcement was made by President Dr. Mohamed Muizzu at a function held at the Social Center on the occasion of the Maldives' Independence Day on Friday night.
Speaking at the ceremony, the President emphasized that the largest loans have been sourced from China and India, countries that have consistently supported the Maldives. He noted that both nations are offering concessions to assist the Maldives in managing their loan repayments at this time of economic difficulties. The president specified that China has agreed to postpone the repayment of both principal and interest for five years, while the UAE has also granted a similar extension. Technical work is underway to finalize the details of these arrangements, he added.
Detailing the support offered by India, the President said India has rolled over a $50 million loan and facilitated easy access to essential goods for the Maldives for the next two years. Additionally, India has provided access to the line of credit to support the Maldivian economy.
President Dr. Muizzu assured that the Maldives has not missed any loan repayment deadlines, with the government having repaid MVR 3.8 billion in loans so far. He highlighted the importance of economic independence as a cornerstone of national sovereignty, noting that the country's economy was struggling when he assumed office, with many government companies nearing bankruptcy.
Sharing details of the government's revenue and expenditure, the President said the government received MVR 18.6 billion in revenue and spent MVR 16.8 billion by the end of June. He emphasized that the state does not resort to printing money and that most expenses are covered by revenue.
The President further mentioned that the Sovereign Development Fund (SDF) set up by President Abdullah Yameen's government had $2 million when he came to power. However, as of today, the SDF now holds $65 million.
The president also spoke about compensation disbursed to various parties by the former government. According to his numbers, the former government released MVR 2.4 billion, while the current government has thus far released MVR 119.7 million as compensation, which also stemmed from previous government decisions. He said that new compensation will now require a court order or judgment, and compensations will no longer be a political tool.
