Finance Minister Moosa Zameer stated during Tuesday's parliament session that concerns about the Maldives facing bankruptcy have diminished, crediting the financial strategies of President Dr Mohamed Muizzu.

Minister Zameer revealed that the Government inherited a national debt of MVR 124 billion, over half of which stemmed from the previous administration.

With 24 per cent of the nation’s revenue allocated to debt repayment, he noted that the current Administration has structured its budget to prioritise essential public services while addressing the debt burden.

Highlighting findings from IMF reports, the minister explained that attempting to repay all debts immediately, while maintaining services, could have pushed the country into bankruptcy.

Instead, the Government has stabilised the financial situation through strategic measures. These include forging agreements with friendly nations, rationalising costs, and restructuring debt repayment schedules to extend timelines and improve revenue flow.

Zameer stressed that the policies outlined in President  Dr Muizzu’s manifesto have been pivotal in avoiding a debt trap. He pointed to significant progress in the country's financial position over the past year as evidence of the Administration's effectiveness.

The finance minister also acknowledged that global financial institutions, including the IMF and rating agencies, had previously urged severe cost-cutting measures to mitigate risks. However, proactive strategies by the Government have eased concerns about insolvency and ensured financial stability.

Minister Zameer attributed these improvements to what he described as the president’s decisive and strategic leadership, which has steered the Maldives away from a potential financial crisis.