Yameen Accuses Government of Printing Money Through MMA Loans

Former President Abdulla Yameen has alleged that the government is printing money by borrowing from the Maldives Monetary Authority (MMA). 

This accusation comes despite assurances from President Dr Mohamed Muizzu that the government has repaid MVR 13 billion in debt over the past seven months without resorting to printing money.

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Speaking at the inaugural meeting of his new political party, the People’s National Front (PNF), Yameen addressed supporters from the PNF office at his residence. This appearance marks his first public speech since the High Court quashed his jail sentence.

Yameen criticised the current administration, asserting that it is following in the footsteps of the previous Maldivian Democratic Party (MDP) government by printing money. “The government will not print money as the previous MDP government did. I myself do not favour printing money,” he declared.

Yameen highlighted discrepancies in the government’s financial figures, noting that while Muizzu claims to have generated MVR 12 billion in revenue, the numbers do not add up according to Yameen’s calculations.

He explained that the MMA, a state institution, issues short-term loans to the government under the provision termed “Advances to the Government.” At the end of the MDP government, this amount stood at MVR 1.7 billion. However, Yameen stated that this figure has now ballooned to MVR 14.7 billion, indicating an increase of MVR 13 billion.

“According to today’s figures, the advances to the government are MVR 14.7 billion. This is an increase of MVR 13 billion, suggesting that the MMA is effectively lending money to the government,” Yameen said.

He further explained that borrowing from the MMA is akin to printing money, whether it is by withdrawing money directly from the MMA or through other means that do not involve funds already in circulation within banks or the hands of the public. Yameen argued that both methods result in the same economic outcome.

In his speech, Yameen stressed that relying on MMA loans to manage government finances is unsustainable and a fundamental error in economic policy.

The government has yet to respond to Yameen’s allegations. The issue remains a point of contention as the nation navigates its economic challenges.