The Ministry of Finance and Planning has reported that the Government of Maldives has paid more than USD 84.3 million in loan repayments and interest so far this year, as the country continues to manage one of the largest debt servicing obligations in its history. According to the Ministry’s Weekly Fiscal Development Report, the payments include USD 51.76 million allocated for loan principal repayments and USD 37.46 million paid as interest, reflecting the government’s ongoing commitment to meeting its financial obligations while maintaining fiscal stability.
The current fiscal year carries the highest debt repayment requirement the Maldives has faced to date. As a result, the government has been implementing a range of financial management measures aimed at ensuring timely repayments while safeguarding macroeconomic stability. These efforts form part of a broader strategy to manage public finances responsibly while supporting continued economic growth and development across the country.
Debt-related expenditure reached significant levels during the previous fiscal year as well. At the end of last year, a total of USD 330.72 million had been spent on loan principal repayments, while USD 298.3 million was paid in interest. Combined, total debt servicing costs amounted to USD 628.79 million, exceeding the annual budget allocation of USD 602.6 million for debt repayments. These figures highlight the substantial financial commitments associated with servicing the country’s external and domestic debt portfolio.
For the current year, the Maldives is expected to pay approximately USD 1.17 billion in debt and financing costs. Among the most significant upcoming obligations is a sukuk instrument scheduled to mature next month, requiring a payment of approximately USD 600 million. Of this amount, USD 150 million will be covered through the Sovereign Development Fund (SDF), which was established to strengthen the country’s capacity to meet major debt obligations and enhance financial resilience.
The government has outlined plans to repay part of the sukuk while refinancing the remaining portion through new financing arrangements. Authorities have confirmed that the interest rate on any new borrowing undertaken for this purpose will not exceed nine percent, reflecting efforts to ensure sustainable financing terms. The total funding required for this year’s debt servicing commitments and the national budget deficit is estimated at USD 1.71 billion.
Earlier this month, President Dr Mohamed Muizzu confirmed that USD 500 million in securities issued in 2021 will be repaid on 8 April. The repayment will be supported by the country’s financial reserves, which currently stand at approximately USD 650 million allocated for this purpose. The President also noted that discussions with international lenders are continuing and are progressing positively, indicating confidence in the country’s ongoing financial engagement with global partners.
The government’s fiscal management approach is aimed at maintaining investor confidence while ensuring that debt obligations are addressed in a structured and sustainable manner. These efforts are considered essential for supporting the Maldives’ long-term economic stability, strengthening its financial position, and enabling continued investment in national development priorities.
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