The Finance Ministry has expressed optimism that the Maldives' financial and debt situation will improve. The government said this in a statement issued following a recent downgrade in the Maldives' credit rating by Moody's.
The credit rating agency lowered the Maldives' rating from "CAA1" to "CAA2" due to concerns over foreign exchange reserves, trade and budget deficits, and delays in implementing fiscal reforms.
In response to the downgrading, the Finance Ministry said the government believes the financial and external debt challenges can be overcome, and the economic and social situation in the Maldives will improve despite the downgrade. The government is deciding on the necessary technical measures required to improve the financial and debt situation, and making preparations to implement change, and multilateral agencies are providing assistance in developing and implementing necessary reforms.
The ministry added that the government is giving special priority to reducing the poverty rate and improving the living standards of the most vulnerable populations.
The statement further said that the government has recently decided on changes to be brought to SOEs to strengthen management and ease financial pressures on the state. The government is also working with foreign countries and investors to secure financial assistance. Additionally, the government is confident that promising developments in tourism and revenue management will boost the economy and improve the fiscal and debt situation.
Finance Minister Dr. Mohamed Shafeeq
