President Muizzu Announces USD 1.3 Billion Repayment of Legacy Government Debt

President Dr. Mohamed Muizzu has announced that the current administration has repaid USD 1.3 billion in debt incurred by previous governments. Speaking at the closing ceremony of the PNC Congress 2026, the President framed these repayments as a critical pillar of his administration's policy to eliminate national debt and reclaim mortgaged state assets. As part of this ongoing effort, the President revealed that USD 50 million was repaid just this past Thursday. A significant portion of this financial recovery included the full repayment of USD 532 million in sukuk (Islamic bonds). Dr. Muizzu explained that the decision to settle these sukuk early was strategic, aimed at freeing the state from long-term debt obligations and releasing mortgages held over national assets. Addressing critics who have suggested that the government should avoid discussing the debts of past administrations, the President questioned whether such parties were attempting to deny the existence of the debt itself. He noted that previous governments had secured funding through various high-cost means, including the mortgaging and selling of vital state assets, which the current administration is now working to reverse. Adding further weight to these claims, Minister of Finance and Public Enterprises Hassan Zareer provided specific data on the pace of these repayments. According to the Minister, the government has spent USD 648.5 million on debt repayment within the last eight months alone. Zareer emphasized the scale of this effort, stating that this amount exceeds the total spent on debt repayment during the preceding nine years combined. The administration's aggressive approach to debt management signals a shift toward fiscal autonomy, prioritizing the recovery of state sovereignty over assets and reducing the long-term financial burden on the Maldivian economy.