Maldives Repays USD 924 Million in Foreign Debt Within Three Weeks

President Dr Mohamed Muizzu has announced that the Maldives government successfully repaid USD 924 million in foreign debt obligations over a 21-day period. Speaking at a press conference at the President's Office, the President emphasized that these significant settlements were achieved without disrupting essential public services or risking a sovereign default. The repayments included the settlement of a USD 500 million sukuk issued in 2021 and a USD 400 million currency swap facility established during the President’s 2024 state visit to India. President Muizzu highlighted that the administration fulfilled these obligations without relying on new fixed assets or collateral, noting instead that the government successfully recovered previously mortgaged properties to facilitate the payments. Parallel to managing international liabilities, the administration is aggressively addressing domestic arrears to revitalize the local economy. The government has already allocated USD 214.21 million toward outstanding obligations to local companies over the past six months. This effort aims to support contractors and individuals who have completed work for various state ministries. According to the President, the government is currently releasing payments to approximately 700 vendors every week. To maintain this momentum, an additional MVR 260 million (approximately USD 16.87 million) is scheduled for disbursement before the end of the month. These funds are specifically earmarked for contractors currently executing critical development projects across the archipelago. By balancing the repayment of high-value international loans with the steady settlement of local invoices, the administration seeks to stabilize the nation's financial standing while ensuring that the domestic construction and service sectors remain viable. President Muizzu framed these moves as part of a broader strategic effort to restore fiscal health without compromising the delivery of government services to the citizenry.