In a bold move to address economic challenges, President Mohamed Muizzu of the Maldives has dismissed seven state ministers along with 43 deputy ministers and 178 political directors. The decision, announced today, is part of the government's broader strategy to reduce spending amid the nation's escalating debt crisis.
The Maldives, a popular destination known for its luxury resorts, is grappling with significant financial strain, with a foreign debt of $3.37 billion, representing about 45 percent of its GDP. President Muizzu, who assumed office last year, has made it a priority to restructure and streamline the government to mitigate the impact of the debt.
This restructuring move is also seen as a step to stave off external financial assistance. In September, the Maldivian government dismissed the option of seeking a bailout from the International Monetary Fund (IMF), maintaining that the nation's financial struggles were temporary and would be addressed internally.
The Maldives has become a focal point for China and India, both of whom hold significant stakes as its largest creditors. China, which accounts for about 20 percent of the country’s external debt, has pledged further financial support following President Muizzu's election, signaling continued cooperation between the two nations.
The sacking of these ministers and appointees underscores the government's intent to implement austerity measures and manage resources more efficiently, as the administration works to navigate the nation's economic difficulties.
