Minister of Finance and State Enterprises Moosa Zameer has said the government has been able to repay in full, significant loans inherited from previous administrations as a result of the strong financial and administrative reforms introduced by the current government.
He made the remarks while speaking at a press conference held at the President’s Office by the Special Cabinet Committee, formed in response to escalating tensions in the Middle East and the Gulf region.
Zameer noted that when President Dr Mohamed Muizzu took office, there were serious concerns about possible debt default. However, the government has since improved debt sustainability and paid off a significant amount of public debt through fiscal reforms, he said. He noted that the government's efforts to rationalise expenditure and manage debt obligations have stabilised national debt at a sustainable level, even during this challenging period. Future borrowing will only be undertaken if there are clear repayment plans and strong financial arrangements in place.
The minister further said the government is maintaining stable fuel and commodity supply and providing subsidies to reduce public burden despite global price fluctuations. He added that there have been no difficulties in securing fuel supplies so far.