President Dr Mohamed Muizzu has announced that the Government will begin disbursing MVR 500 million to local companies next week.

The announcement was made during his three-day visit to Gaafu Alifu and Gaafu Dhaalu Atolls.The funds will be allocated to private entities contracted for various developmental projects, addressing delays that have impacted businesses for years.

Speaking to residents of Hoandehdhoo in Gaafu Dhaalu Atoll, President Dr Muizzu reiterated his Administration’s commitment to supporting local businesses, particularly small and medium-sized enterprises.

This payment is part of a broader initiative to settle the MVR 9.9 billion owed to private companies; a financial burden inherited when the current Administration took office in November 2023.

The President acknowledged the difficulties faced by many companies due to delayed payments, particularly those contracted by state-owned enterprises such as FENAKA Corporation, Road Development Corporation (RDC), and the Waste Management Corporation (WAMCO). He assured that efforts are underway to complete the disbursements before Ramadan, alleviating financial strains on affected businesses.

President Dr Muizzu also highlighted the economic challenges faced by his Administration, including a state debt of approximately MVR 200 billion and a budget he described as restrictive and obstructive to developmental initiatives. These constraints have forced delays and suspensions of several ongoing projects.

Despite these challenges, the Administration has disbursed approximately MVR 6.6 billion during its first year in office, underscoring its resolve to address outstanding obligations and stabilise the financial situation.