look news india
New Delhi: Maldives is currently facing a serious economic crisis. The increasing debt on the country has brought the country's economy to a critical point. After the Muizzu government came to power, the situation in the country has become very bad. Its rupee has no value. President Muizzi is considered to be China's tail-catch. Many decisions are taken at the behest of China. Even knowing that it is facing an economic crisis, China continues to give it loans and its economy is continuously weakening.
The IMF also warned Muizzu against taking excessive loans from China. Earlier this year, the IMF told the Maldives that borrowing too much from China would be disastrous for its economy.
The International Monetary Fund also said that if the economy is to be revived, then expenditure will have to be cut, revenue will have to be increased and foreign borrowing will have to be reduced.
At this time, Maldives is facing a new problem every day. Credit rating agency Fitch has reduced its credit rating to CC. In such a situation, its ability to repay foreign debt seems to be in doubt.
Earlier in the month of June, its credit rating had come down to CCC+. But due to the arrival of tourists, there was a slight increase in foreign exchange earnings. Therefore, the rating went up a little but that also reflects the poor condition of the country's economy.
Finch has said that foreign investment is declining. Import costs are rising. There is pressure on the dollar. Economic stability is so bad that the Bank of Maldives has stopped receiving and sending dollars through Rufiyaa accounts. The banking system itself has come into crisis.