President Dr. Mohamed Muizzu stated today that the biggest achievement of the past year was overcoming the financial crisis facing the Maldives and preventing bankruptcy, adding that the next step would be development.

One of the world's largest credit rating agencies, Moody's, recently maintained its CAA2 rating for the Maldives. Moody's downgraded the Maldives' rating from CAA1 to CAA2 last September. A CAA2 rating is given to countries with poor financial conditions and at risk of defaulting on debt.

Speaking at a meeting with the people of AA. Rasdhoo, the President said that shortly before the end of the previous administration, the IMF released a report on the Maldives, which also highlighted that the country was on the verge of bankruptcy. However, he stated that preventing the country from going bankrupt within the past year of the current government is an achievement.

"Saving the economy and bringing it to safety is actually the biggest thing we accomplished last year. Not defaulting, saving the country," the President said.

In a statement released by Moody's on the 3rd of this month, the main factors considered in maintaining the credit rating included significant measures taken to improve the Maldives' financial situation compared to before. The statement highlighted that new foreign exchange regulations introduced by the central bank, MMA, and tax reforms implemented by the government are likely to increase foreign exchange reserves.

Moody's statement also noted the Maldives' success in securing foreign currency financing. It mentioned the establishment of a currency swap agreement of USD 400 million and INR 30 billion between the Maldives and India in September 2024 as an important step in improving the country's financial situation.

Furthermore, it is estimated that foreign exchange reserves will increase as the government implements changes to tax rates.

Moody's said that while significant expenditure is expected for external debt servicing in the next 12-18 months, difficulties in obtaining foreign currency are likely to persist. The agency also stated that maintaining or improving the current credit rating in the coming days will depend on the government's ability to secure foreign currency financing and successfully implement the fiscal reforms outlined in the 2025 budget approved by the People's Majlis.