President Announces Measures to Address Country’s Fiscal and Monetary Challenges

President Dr Mohamed Muizzu has decided to implement measures to address the country’s fiscal and monetary challenges, based on recommendations from his Cabinet. This decision was made following comprehensive deliberations on a proposal presented by the Ministry of Finance during the most recent Cabinet meeting.

Deliberating on the details of dues owed by the government to companies and solutions that can be offered to such large vendors, the President decided that these dues should be repaid from its revenue. The decision stated that, depending on the amount of money to be paid to vendors each month, the payments would be conducted in a transparent manner, starting with the oldest bills. It also recommended determining the number of bills below a certain threshold that the government would repay monthly, and maintaining records of both halves separately.

Additionally, following consultations with his Cabinet, the President decided to explore avenues for vendors to transfer unpaid dues to treasury bonds (T-bonds), which would generate additional revenue for vendors. Measures will be provided for those interested in leasing lands, offsetting payments owed to the state, particularly taxes owed to the Maldives Inland Revenue Authority (MIRA). A taskforce comprising stakeholders will be established to lead efforts in recovering funds owed to the state. Furthermore, the President will review loan options presented by the Ministry of Finance and seek additional loan options, including short-term loans.

The recent Cabinet session also concentrated on measures to fortify the foreign exchange market and boost the demand for the local currency, the Maldivian Rufiyaa. The decision to push legislative reforms allows the state to levy import duties in US dollars on businesses that generate revenue in foreign currencies. Further reforms will enable the state to collect employee pension contributions from such companies under the Pension Act of Maldives (8/2009) in US dollars, as well as mandate that corporate income tax be payable exclusively in US dollars.