Maldives’ Finance Minister Zameer resigns

Finance Minister Moosa Zameer has resigned from President Dr. Mohamed Muizzu’s cabinet.

Sun has learnt from credible sources that while Zameer formally submitted his resignation on Monday morning, he had made the decision to resign some time back.

He has returned home after submitted his resignation letter to the President’s Office.

The Finance Ministry confirmed his resignation, but did not disclose a reason for the decision.

Zameer had initially served in President Muizzu’s cabinet as foreign minister, but replaced Dr. Mohamed Shafeeq as the finance minister in December 2024 after the latter resigned.

He was seen as one of the most hardworking and popular figures within the cabinet.

Zameer was later granted additional powers beyond the scope of his original mandate. In changes to the mandate of government ministries in April, President Muizzu transferred many of the tasks of the Planning Ministry and Local Government Ministry to the Finance Ministry.

He was also serving as president of the Local Government Authority (LGA) at the time of his resignation.

Zameer is a veteran politician who previously served as a member of the Parliament.

The government has yet to name his replacement.

Zameer’s resignation on Monday comes after he survived a major cabinet shakeup in the wake of the ruling party’s heavy defeat in local council elections and a referendum on synchronizing major elections in April.

The April 14 reshuffle saw 10 ministers – half of the cabinet - getting asked to resign. The President’s Office said at the time that they had resigned to provide room for President Muizzu to run the government “in accordance with the aspirations of the people.”

Zameer’s resignation comes as the Maldives faces major economic challenges due to its staggering debt. The country has settled around USD 1 billion in debt obligations so far this year, including a USD 100 million sukuk in April.

Following the repayment of this massive debt, Fitch recently upgraded Maldives’ credit rating from 'CC' to 'CCC-'. However, the 'CCC-' rating remains within speculative or "junk" territory.

While the People’s National Congress (PNC) hails this as a major win, economic analysts continue to warn that while the immediate threat of default has diminished following the sukuk repayment, substantial economic challenges continue to persist.

In addition of its massive external debt, the government also reportedly owes billions of Rufiyaa to private companies for various government contracts.

President Muizzu has previously promised to clear all outstanding payments to private companies by Ramadan last year. He failed to deliver the promise, and on October 10, promised to clear it within 10 days.

He last promised to have it cleared by Ramadan this year.

Former President Abdulla Yameen Abdul Gayoom alleges that the government owes over MVR 14 billion in outstanding payments to private companies. However, the exact figure is unclear, as the government refuses to disclose it.