Economic Challenges Temporary, No IMF Assistance Needed: Zameer

Minister of Foreign Affairs Moosa Zameer has expressed confidence that the Maldives' current economic difficulties are short-term and that the country is unlikely to seek assistance from the International Monetary Fund (IMF).

During a visit to Sri Lanka, where he was joined by Finance Minister Dr. Mohamed Shafeeq for meetings with the Central Bank and other officials, Zameer assured reporters that the Maldives has strong support from international partners who are sensitive to the nation's financial needs.

"We have bilateral partners who understand our situation and are prioritizing support for us," Zameer said in a press conference.

"I don't believe this is a time for the Maldives to engage with the IMF. The challenges we face are temporary, primarily due to a dip in reserves," he explained.

The minister highlighted that improvements in liquidity are expected as the government implements changes to taxation and introduces cost-cutting measures across state-owned enterprises.

Zameer also addressed the Maldives' diplomatic relations with India, stating that any misunderstandings between the two nations have been resolved following the repatriation of Indian troops from the Maldives.

"We did experience some rough patches with India initially, but our relations with both China and India remain strong, and both countries continue to support the Maldives," Zameer added.

The minister’s remarks come shortly after Moody’s Ratings downgraded the Maldives' credit rating to Caa2, citing high credit risk. Fitch had similarly downgraded the country in June, pointing to concerns over dwindling foreign currency reserves.

Despite these concerns, the government remains optimistic about improving reserves and meeting its debt obligations. The Maldives' reserves currently stand at USD 444 million, with USD 61 million in usable reserves.