Former Vice President Dr. Mohamed Jameel Ahmed has criticized the current government stating that the reserve fund has been exhausted while borrowing from other countries has become the new norm.
With regards to Fitch Ratings downgrading Maldives to “CCC”, Dr. Jameel took to twitter to say that the MDP government has exhausted the reserve fund while making borrowing of loans the new system, after having promised to make Maldives debt-free. He further stated that Fitch Ratings downgrading Maldives will cause a lot of inconvenience for the public and that the economic burden will be borne by the several generations to come.
Hong Kong’s Fitch Ratings downgraded the ratings of Maldives from a “B” Negative to “CCC” on Thursday, 5th November 2020. The challenges in procuring foreign currency, economic challenges faced by the country due to COVID-19 pandemic, and the increase in borrowings are some of the reasons for the downgrade.
“CCC” ratings are usually given when the country’s debts increase. The rating shows the risk of investing in those countries.
However, the government of Maldives has refused to accept Fitch’s ratings. A statement issued by the Ministry of Finance stated that the current economic outlook shows a promising recovery and that the government has been managing the economic consequences of COVID-19. The statement further said that the Fitch Rating’s assessments are hard to accept.
