Government Drove Maldives Into an “Entirely Avoidable” Crisis Says Ameer

Former Finance Minister Ibrahim Ameer has accused the government of driving the Maldives into an entirely avoidable fiscal and economic crisis through reckless debt management and political decision-making.

In a blistering statement on X, Ameer said the government abandoned basic principles of fiscal discipline, opting instead for last-minute financing as public finances deteriorated and recurrent spending ballooned. He warned that delaying refinancing in such conditions is a “recipe for disaster.”

Pointing to his tenure, Ameer said the previous administration proactively managed debt by retiring nearly USD 200 million of the USD 250 million Sunny Side bond almost a year before maturity, even amid the COVID-19 downturn.

He accused the current government of sidelining international partners, weakening the Ministry of Finance, and pushing out experienced technical staff for political reasons, crippling institutional capacity when it was most needed.

Ameer also slammed the move to force the Maldives Pension Administration Office to fund government operations using liquidity injected by the Maldives Monetary Authority, calling it a dangerous misstep, particularly with Sukuk maturity looming. Persistent lack of transparency, he said, has further shattered investor confidence.

Warning that the government waited until the eleventh hour to seek financing, Ameer said the country is now paying the price for political choices that turned a manageable challenge into a full-blown crisis.