President Dr Mohamed Muizzu stated that discontinuing issuing new banknotes into circulation was the most critical measure this Administration took to revive the Maldivian economy. He made the remarks while speaking with residents of Hithadhoo and Feydhoo at Feydhoo School tonight.
The President conveyed that the decision to cease the issuance of new banknotes into circulation was challenging. However, he emphasized that refraining from making this decision would risk exacerbating the Maldives’ financial position. He reiterated that the Administration had inherited a debt of MVR 120 billion and that the volume of new banknotes introduced into circulation in the past five years alone surpassed that of the preceding four decades. The President further revealed that MVR 8 billion in banknotes had been issued into circulation within the past five years.
The President elaborated that international financial institutions have recognized the Administration's decision to discontinue issuing new banknotes into circulation, coupled with other strategic measures, as bold and courageous, especially in light of the Maldives' economic challenges.
President Dr Muizzu clarified that projects initiated under this Administration, even those financed through loans, such as the bridge development project connecting Hulhumeedhoo and Hithadhoo in Addu City, would benefit the people directly. He said that procurement and logistical operations associated with the project would be outsourced to local entities, ensuring Addu residents' benefit.
Acknowledging his earlier meeting with the Addu City Council, the President revealed his intention to cater to their needs. However, highlighting the impending economic crisis, the President urged the council to reprioritize the projects, considering their most pressing developmental needs.
The President conveyed that the decision to cease the issuance of new banknotes into circulation was challenging. However, he emphasized that refraining from making this decision would risk exacerbating the Maldives’ financial position. He reiterated that the Administration had inherited a debt of MVR 120 billion and that the volume of new banknotes introduced into circulation in the past five years alone surpassed that of the preceding four decades. The President further revealed that MVR 8 billion in banknotes had been issued into circulation within the past five years.
The President elaborated that international financial institutions have recognized the Administration's decision to discontinue issuing new banknotes into circulation, coupled with other strategic measures, as bold and courageous, especially in light of the Maldives' economic challenges.
President Dr Muizzu clarified that projects initiated under this Administration, even those financed through loans, such as the bridge development project connecting Hulhumeedhoo and Hithadhoo in Addu City, would benefit the people directly. He said that procurement and logistical operations associated with the project would be outsourced to local entities, ensuring Addu residents' benefit.
Acknowledging his earlier meeting with the Addu City Council, the President revealed his intention to cater to their needs. However, highlighting the impending economic crisis, the President urged the council to reprioritize the projects, considering their most pressing developmental needs.
