ISTANBUL: Maldives has axed dozens of political appointees as a ‘direct cost-cutting measure’ amid dwindling foreign reserves, according to a statement on Tuesday.
President Mohamed Muizzu removed 228 political appointees from various government ministries as part of ‘economic reform agenda, aimed at reducing government expenditure,’ the statement from his office said.
The decision comes as the island nation is struggling to shore up its foreign reserves.
Earlier in August, Fitch Ratings had downgraded the Maldives’ long-term foreign currency issuer default rating to ‘CC’ from ‘CCC,’ citing mounting financial pressures that have heightened the risk of default.
The Maldives’ foreign exchange reserves have recently declined by approximately 20% and hover around $400 million, marking the lowest level since December 2016.
The statement from Muizzu’s office said 228 appointees will be removed within next 15 days and include seven state ministers, 43 deputy ministers, 109 senior political directors, and 69 pol
itical directors.
‘This significant reduction in political appointments aligns with the President’s broader efforts to streamline government operations and ensure more efficient use of public funds,’ it added.
Maldives was also due to pay for its $500mn sharia-compliant sukuk, or Islamic bond, this month.
In recent weeks, Maldives has signed currency swap pacts with China and India to boost reserves.
Source: Anadolu Agency