Yameen: Finance Minister’s statements on Maldivian economy hold no weight

Opposition leader, former President Abdulla Yameen Abdul Gayyoom has stated that statements made by Finance Minister Ibrahim Ameer regarding the economic situation of the Maldives hold no weight.

Speaking at an event held at PPM headquarters on Thursday night, Yameen said that economic outlooks forecasted by authorities such as US-based investment bank, J.P. Morgan, cannot be challenged.

J.P. Morgan had recently listed Maldives amongst countries that are at possible risk of exhausting foreign reserves by the end of next year.

The bank had remarked so in a report issued following their assessment of the global impact from the Russia-Ukraine conflict. In this regard, the report states that amongst the 52 countries they had looked at – nearly half of them have significant obstructions to settling their debts. Amongst the half of them – J.P. Morgan had also listed countries that are at high risk of exhausting foreign reserves and defaulting on its loans; with Maldives being included on the list.

In response to J.P. Morgan’s report – Finance Minister Ameer said that Maldives’ official reserve assets will be back to pre-pandemic level by the end of the year. 

Minister Ameer refuted that Maldives was at risk of exhausting its reserves and defaulting on its loans – adding that Maldives had no challenges in servicing its short-term debt. He also stated that loans were being withdrawn by the Maldives in accordance with the state budget. He went on to say that with tourism improving; the economy has begun to flourish as well.

Responding to Minister Ameer, Yameen said that the statements held no weight – adding that Maldivian were not clueless. He said that research of the changes to global market and global economy and it’s within the region will also prove the delicate situation Maldives is in.

The opposition leader stressed that there is no way an economic downturn experienced worldwide will not affect the Maldives; adding that Maldives would actually be impacted more in comparison as a smaller country.

Yameen had also refuted statements made by President Ibrahim Mohamed Solih regarding the situation of Maldivian economy during a press conference held on Wednesday evening.

In this regard, Yameen had stated that although statements are made by the president at a podium – there should be a mean to verify them.

He added that there were local experts in the Maldives capable of explaining such complexities in layman’s terms to less informed citizens.

“People would be confused when a person of this stature speaks so differently regarding the same matter. Today, not everyone would believe statements made by the president on a podium,” he had said.

Yameen also responded to statements made by President Solih urging the public to adopt lifestyle changes such as economizing as we are faced with a global economic downturn. On this note, he said it is not only the citizens which need to economize, the government must as well.

He went on to criticize contracting an Indian company to develop hospitals at some local islands during such a tense time – adding this will in no way benefit the Maldivian economy.