President Dr. Mohamed Muizzu has announced that his administration is now beginning the long-awaited process of paying off backlog bills owed by previous governments to private companies and state contractors. The move comes after nearly two years of stabilizing the economy and securing crucial financial relief, including recent debt restructuring support from China.
Clearing the Legacy of Unpaid Bills
When President Muizzu assumed office on 17 November 2023, the government and state-owned enterprises (SOEs) carried heavy arrears to Maldivian businesses, many of which had rendered services but were left uncompensated. Addressing the nation, the President declared that these outstanding obligations will now be settled in full compliance with legal and regulatory frameworks.
Stability Before Settlement
The President explained that immediate repayment was not possible at the start of his term due to the severe fiscal crisis inherited from past administrations. Instead, his government focused on stabilizing state finances, restoring investor confidence, and securing international support. With economic reforms in motion and fresh relief secured through China’s debt restructuring agreement, the administration is now in a position to honor long-delayed payments.
Boosting Businesses and Building Trust
This repayment drive is expected to inject much-needed liquidity into the private sector, providing relief for contractors, suppliers, and service providers who have waited years to receive compensation. It also reinforces the government’s commitment to fairness and accountability, strengthening trust between the state and Maldivian enterprises.
A Turning Point for the Economy
By tackling the backlog left behind by predecessors, President Muizzu is sending a clear message: his government will not allow the weight of past neglect to hold back the nation’s future. As the Maldives navigates its economic challenges, the settlement of these arrears marks a decisive step toward long-term stability, business confidence, and sustained growth.
