During the visit to R. Angolhitheemu, President Dr. Mohamed Muizzu highlighted the nation’s economic challenges and outlined plans for infrastructure development. He emphasized that upon assuming office, the Maldives faced significant financial difficulties, including an inability to meet foreign debt obligations.
“When we took over this government, the country was in a state where it couldn’t pay its foreign debts, defaulting and going bankrupt,” President Muizzu stated. He attributed the halt of many infrastructure projects in the past year to these economic constraints.
Despite these hurdles, the President assured residents that the government’s focus on economic stabilization has set the stage for resuming and initiating development projects. He specifically mentioned the stalled water and sewerage project in Angolhitheemu, promising prompt solutions for the island and others facing similar issues.
Accompanied by a high-level delegation from key ministries, President Muizzu’s visit to Raa Atoll includes meetings with councils and communities across eleven islands. This initiative is part of his broader commitment to engage directly with local councils nationwide, aiming to visit each inhabited island at least twice during his five-year term.
The Maldives’ economic challenges have been underscored by international financial institutions. In 2024, Moody’s Investors Service downgraded the country’s long-term credit rating from Caa1 to Caa2, citing increased risks of default due to declining foreign exchange reserves and substantial debt repayments looming in 2025 and 2026.
In response, the government announced a fiscal reform agenda in February 2024, aiming to phase out existing subsidies and implement targeted cash transfer schemes to improve health spending efficiency and rationalize capital expenditure.
President Muizzu’s administration continues to navigate these economic challenges while prioritizing essential infrastructure projects to enhance the quality of life for Maldivian citizens.
