Maldives Repays $648 Million in Debt Over Eight Months, Surpassing Nine-Year Total

The Maldives has spent USD 648.51 million on debt repayments in the last eight months, a historic fiscal surge that exceeds the total amount spent on debt servicing over the previous nine years combined. Minister of Finance and Public Enterprises Hassan Zareer revealed these figures during a presentation at the People's National Congress (PNC) Congress. He detailed a financial trajectory that has seen the nation's debt obligations escalate rapidly following a period of relative stability between 2015 and 2020. The Minister explained that the economic fallout from the COVID-19 pandemic served as the catalyst for this crisis. An initial post-pandemic repayment requirement of approximately USD 25.94 million triggered a steady increase in the national debt burden. By the end of 2024, total state debt obligations reached USD 3.3 billion, making the current period the most demanding in the country's history. "In the past 8 months of this year, USD 648.51 million in loans has been paid off," Minister Zareer stated, noting that this figure is roughly equivalent to the total repayments made from 2015 through 2023. This aggressive repayment schedule has left the state in a precarious position, with a significant majority of incoming foreign currency being immediately diverted to service loans rather than funding public services or infrastructure. Beyond debt servicing, the Minister addressed the persistent pressure of fuel imports on state reserves. Fuel costs peaked in 2022 at USD 831 million and remained above USD 700 million for the following three years. However, the government reported a slight easing of this pressure, with fuel expenditures trending downward this year to reach USD 683 million. The data underscores a challenging fiscal landscape for the Maldives, where the combined weight of pandemic-era borrowing and high import costs continues to constrain the national budget.