Maldives Economic Crisis: By being enmity with India, China supporter Mohammad Muizzu has ruined the country of Maldives, which is called a paradise of tourism. Maldives is going through its worst phase after Muizzu became the President. The country’s economic system has collapsed to such an extent that there is no money to pay salaries to government employees. According to the report of Maldivian news portal Aadhadhoo, the Muizzu government has taken a loan of Rs 800 million from the Bank of Maldives to pay salaries to the employees.
In its report, Adhaadhoo quoted a reliable source as saying that the National Bank has issued a loan of MVR 800 million to the Ministry of Finance of Maldives. Adhadhu also told that the government has taken this loan to pay the salaries of the employees. Meanwhile, experts have warned about the economic situation of Maldives. This news has come at a time when India has given an extension of one year in the repayment of loan of 50 million US dollars.
India gave extension in repaying the loan
Maldives had to repay a loan of US$ 50 million only last month, but due to the economic crisis, Maldives President Mo Muizzu had requested the Indian government for an extension. In June this year, the Muizzu government had announced a cut in expenditure to overcome the financial crisis. He had said that ‘We have decided to implement several measures to reduce the expenditure of the state.’ This included reducing political positions, reducing costs and deciding not to hold celebrations on various occasions.
Who is responsible for the economic crisis in Maldives?
On the other hand, experts say that the reason behind the economic crisis in Maldives is the increase in government expenditure. As soon as he assumed the presidency, Muhammad Muizzu bought a drone from Türkiye for 37 million US dollars. Earlier this year, Maldives had repaid a loan of US $ 50 million to India along with interest, although at that time there was no obligation to repay it.