'Maldives' economy is in trouble' says Muizzu, cannot start new projects because of too much debt.

 'Maldives' economy is in trouble' , cannot begin unused ventures since of as well much obligation.

'Maldives' economy is in trouble' says Muizzu, cannot start new projects because of too much debt.

The President of the Maldives said that during his time in office, the relationship between the capital city Male and New Delhi has gotten worse. He also said that not only is the government in debt, but also the state-owned businesses have borrowed a lot of money.

The President of Maldives, Mohamed Muizzu, said on Tuesday that he cannot start any new projects because the country is in a lot of debt. He said he didn't want to lie to the public about the country's economy when he became leader, as reported by the Male-based news outlet Adhadhu.

Muizzu had to tell the truth about how the economy was because people were upset about projects not getting done in the island nation. "The next two months will be really hard. " "This is a very important time," he said while visiting Guraidhoo, one of the country's islands. "It will be easier after July. " "We are beginning to do the work needed to make money now. "

The President of the Maldives said that the amount of money the government owes and the amount that state-owned companies owe is very high. This has caused problems in the relationship between the Maldives and New Delhi. "I am working hard to make sure that sustainable development is really happening. " He said that if he builds the foundation the same way as before without thinking about what's really happening, it won't work because there's an election coming up.

Muizzu, who became leader in November of last year, has been favoring China, which is one of the major lenders to Male. He said it's hard to do development projects when we are also trying to handle our debt. "I want to do more building and improving projects. " This is why we can't start all the projects that have stopped and start new projects on all the islands at the same time," he said.

The President of the Maldives said he can't promise to do everything that everyone wants all at once. The economy we got is not doing well. "We have to do something about the amount of money we owe," he told Adhadhu. "We have started working very hard to fix this. " Both the IMF and the World Bank approve of the economic plan I shared during my campaign.

Muizzu, who has been criticized by opposing parties for being against India, said he spoke with World Bank and IMF officials and they agreed that the best way to make the country's economy better is to follow the government's plans. "We will explain what can be accomplished and what has been decided. " Some things may need more time. He said we will be truthful and keep our promise.

Muizzu went to China last month and some people told him to be careful about Beijing's debt-trap policy. The man borrowed a lot of money from China. The China Development Bank, the Industrial and Commercial Bank of China, and the Export-Import Bank of China own more than 60 percent of the money that Maldives owes to other countries, according to a report by the Observer Research Foundation (ORF).

One month before Muizzu became President, the World Bank said that the Maldivian economy was in danger because it was borrowing money at high costs from other countries. By 2026, the Maldives economy will need to pay off a bigger debt of $1. 07 billion, which is the highest amount of debt ever.

Asia Nikkei said the bank's new evaluation is making people more worried about Male having to pay $300 million every year to cover its foreign debt from 2022 to 2024. Even though people thought the deficits would be smaller, the Maldives still has a lot of debt, about 115% of its GDP.

Faris H Hadad-Zervos, who works for the World Bank in the Maldives, said that the island country is expected to have a strong growth of 6. 5 percent this year. "However, in order to make the economy stronger in the future and continue with the recent changes, we need to manage our debt carefully and make smart decisions about spending money on investments. This is important because global conditions are tough and we already have high levels of debt. "