Maldives Repays $974 Million in 40 Days to Stabilize National Economy

The Maldivian government has settled $974 million in outstanding debt over the last 40 days, marking a critical step in its strategy to stabilize the nation's financial standing. Chief Spokesperson at the President’s Office, Mohamed Hussain Shareef, announced that these repayments are central to President Dr. Mohamed Muizzu’s priority of managing the substantial debt inherited from previous administrations. Speaking during the “Press with the Spox” series, Shareef detailed that the recent repayments included a $524 million Sukuk settlement and a $400 million currency swap. He emphasized that the administration is implementing strategic policies designed to maintain essential development projects without further inflating the national debt. Significant progress has also been made regarding loans from the Indian government. Of a $150 million loan obtained in 2019, $50 million was repaid in January and another $50 million was settled this month. Shareef confirmed that the remaining $50 million will be paid in September, explicitly stating that the government will not roll over the loan and did not resort to additional borrowing to meet the most recent payment. Beyond the figures, the government is focusing on rehabilitating its international image. Through negotiations with creditor nations and global financial entities, the administration aims to restore confidence among investors and improve the country's credit rating. Shareef noted that these diplomatic efforts have already begun to shift the perceptions of global financial institutions toward a more positive outlook. As the government approaches the midpoint of its five-year term this Sunday, the administration is shifting its focus toward administrative reform. Shareef indicated that these systemic changes are necessary to accelerate the pace of work and fulfill campaign pledges made to the public across multiple sectors beyond the economy.