President Dr. Mohamed Muizzu has once again on Tuesday addressed criticisms regarding the ceremonial inaugurations of ATMs during his official visits to the atolls.
Under the President's initiative, the Bank of Maldives (BML) commenced the 'Mulhi Raajje ah BML ATM' project in November 2024, aiming to establish ATM services across all islands.
During these island visits, President Muizzu is typically accompanied by BML CEO Mohamed Shareef, and the ATM openings are formalized through special functions often attended by various government ministers.
The opposition has voiced objections, questioning the high priority accorded to ATM inaugurations. The President previously countered these criticisms by emphasizing that the establishment of ATM services is not a trivial matter, underscoring the critical importance of ensuring equitable access to financial services throughout the nation.
Reiterating his stance in a public address following the opening of an ATM in Thaa atoll Madifushi on Tuesday, the President acknowledged that some might view the ATM openings as frivolous events. He asserted that these services would significantly enhance convenience for island residents, thereby alleviating various expenditures previously incurred.
Bank of Maldives (BML) establishes self-service ATM centres in V. Fulidhoo and V. Thinadhoo. (Photo/BML)
He stated, "[Opening ATMs] truly empowers the people, boosts the economy, brings convenience to the people."
While the President highlighted the positive impact on the economy, the nation's public debt has reached substantial levels, prompting some experts to project a potential sovereign default in 2026. Major credit rating agencies have downgraded Maldives' ratings due to heightened default concerns, and international financial institutions have also expressed apprehension.
To mitigate this fiscal risk, the International Monetary Fund (IMF) and the World Bank have advised curtailing public expenditure. In response to these recommendations, this year's budget initially incorporated pension and subsidy reforms, which were subsequently abandoned.
The President later opted to replace these reforms by restructuring project implementation, favoring state-owned enterprises to achieve cost savings. However, this policy decision has reportedly led to job losses in the private sector and has negatively impacted private businesses.