President Muizzu Repays $1.29 Billion in Debt Within First 30 Months

President Dr. Mohamed Muizzu has announced that his administration has repaid USD 1.29 billion in external debt over the last 2.5 years, surpassing the combined repayments of the previous two governments over a five-year period. Speaking at a rally celebrating the People’s National Congress (PNC) victory in the Meedhoo Council presidential election, the President provided a detailed breakdown of the nation's financial trajectory. He revealed that the current government has settled more debt in 30 months than the previous administration, which repaid USD 953 million over five years, and the administration prior to that, which settled USD 418.18 million in the same timeframe. Of the total repayments made by the current administration, USD 891 million was used to settle loans inherited from the immediate previous government, and USD 195 million from the administration preceding it. The President further noted that USD 62.5 million was paid toward loans from the terms of former Presidents Mohamed Nasheed and Mohamed Waheed, while USD 38.1 million was allocated to debts from President Maumoon Abdul Gayyoom’s era. Only USD 4.9 million of the repayments were for loans taken by the current administration. Despite these gains, significant liabilities remain. President Muizzu stated that USD 1.14 billion is still owed from the previous government's loans, USD 710 million from the government before that, and USD 150.4 million from the Nasheed and Waheed administrations. Loans borrowed by the current administration stand at USD 239 million. The President highlighted a positive shift in the nation's debt-to-GDP ratio. Total external debt as a percentage of GDP fell from 51.3 percent at the end of 2023 to 44.5 percent by May this year—a reduction of 6.89 percent. Similarly, the government's direct debt as a percentage of GDP decreased from 108.8 percent in December 2023 to 104.8 percent by May, marking a four percent decline in 2.5 years.