Maldives Spends $1.29 Billion on Debt Servicing Under Current Administration

The Maldivian government has spent USD 1.29 billion on national debt servicing during the first two and a half years of the current administration, far exceeding the combined expenditure of the previous two governments over the same period. Minister of Finance and Public Enterprises Hassan Zareer revealed the figures during a press conference at the President's Office. According to the breakdown, the administration of President Abdulla Yameen spent USD 191 million on loan repayments, while President Ibrahim Mohamed Solih’s administration spent USD 428 million during their respective early terms. Minister Zareer noted that 56 percent of the state's current reserves are being utilized for debt repayments. A significant portion of this expenditure included the complete settlement and clearance of a USD 500 million Sukuk—an Islamic bond—issued in the international financial market in 2021. Despite the heavy financial burden, the Finance Minister reassured the public that foreign currency revenues remain sufficient to support critical national priorities. The government continues to prioritize the allocation of US dollars for citizens traveling abroad for medical treatment and students pursuing degrees overseas. Furthermore, the administration is maintaining the flow of dollars to support local businesses and secure essential imports, including fuel and liquefied petroleum gas (LPG), to ensure price stability and availability for the public. Minister Zareer emphasized that the government is carefully managing these financial pressures. He stated that the administration is balancing its commitment to fulfill international debt obligations while ensuring that the delivery of essential commodities and public services remains uninterrupted.