Maldives Repays $50 Million India Loan as Debt Reduction Drive Accelerates

President Dr Mohamed Muizzu has announced that the Maldives has repaid an additional USD 50 million toward a USD 150 million loan originally secured from India by the previous administration. This payment, completed on May 11, brings the total amount settled for this specific debt to USD 100 million. Addressing local journalists during his weekly press conference, President Muizzu explained that the loan was obtained through three separate transactions in 2019. The current administration inherited these obligations and has since implemented a strategic repayment plan to stabilize the nation's financial standing. The remaining USD 50 million is scheduled for settlement on September 17, with the President confirming that all necessary arrangements are in place to meet the final deadline. This payment is part of a broader, aggressive strategy to eliminate inherited financial liabilities. The President revealed that the Maldives has discharged a staggering USD 974 million in various obligations—including currency swaps, loans, and sukuk instruments—within the last 40 days alone. This rapid repayment effort aims to relieve the state of burdensome debts that have accumulated over several previous terms. "We are doing these things for the benefit of the people, to get rid of the debt," President Muizzu stated, expressing his commitment to liberating the country from significant financial burdens to ensure future economic stability. However, the President also addressed political friction, expressing regret that some former high-ranking officials have made statements he described as unfounded. He claimed these remarks are intended to create public unrest and damage the international reputation of the Maldives. President Muizzu called on these individuals to cease such behavior, urging them not to undermine the nation's economic recovery during this critical financial juncture.