State debt expected to reach 174 billion rufiyaa by end of term, MDP claims

The Maldivian Democratic Party (MDP) has stated that the current government is taking on more debt than it is repaying, and that total state debt is projected to reach 174 billion rufiyaa by the end of the government's term. The claim was made during a press conference held by the MDP's Economic Committee today. The party's Economic Committee expressed concerns about the budget submitted to the People's Majlis for 2027, noting that expenses are increasing day by day and that debt is rising due to budget waste through government companies and borrowing to repay existing debt. Former Finance Minister and committee rapporteur Ibrahim Amir said the submitted budget features large expenses, a large deficit, and will increase debt. He stated that the government's financing plan for this year has failed, forcing it to borrow from the internal market. Amir presented detailed statistics compiled by the party, indicating that the government will incur at least an additional 50 billion rufiyaa in debt during this term, with 41 billion rufiyaa of that being internal debt borrowed from banks. "This government is taking an additional 76 billion rufiyaa in debt from 2024 to 2028. Total direct debt will reach 160 billion rufiyaa. The majority of the debt is taken from Maldives' banks and the internal market like the MMA," he said. The MDP forecast that the country's total debt will increase to 174 billion rufiyaa by the end of 2028, and when including guarantees, total debt could rise from 125 billion rufiyaa to 180 billion rufiyaa by the end of 2029. Amir accused the government of pursuing "deceptive" policies, saying that although it claims to fight debt, the accounts show the fight is failing significantly. The MDP called for several disclosures before the budget is passed, including the terms of every loan and bond, public debt accounts, details of domestic finance settlement, PPP projects, and details related to the Rasmalé agreement.