Government Ensures Timely Debt Repayment, Investor Confidence Strengthens

The Minister of Finance and Planning, Moosa Zameer, has expressed confidence in the Maldives’ ability to meet its debt obligations, attributing this to measures implemented under the leadership of President Dr Mohamed Muizzu. 

The minister said these measures are the result of two years of disciplined efforts by the administration. A sukuk valued at USD 500 million was issued by the previous administration in 2021. Annual interest payments on the sukuk amount to USD 50 million, split into two tranches of USD 25 million each. For 2026, the government has specifically allocated USD 603.1 million for the repayment of this bond.

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The state’s capacity to manage its substantial debt obligations and avoid bankruptcy was among the most pressing challenges faced when the current administration assumed office. Financial reports and analyses from various institutions had highlighted concerns over the government’s ability to navigate these risks.

Minister Zameer noted that the value of the sukuk had previously been significantly devalued due to perceived bankruptcy risks, with a Finance Ministry report indicating that the sukuk traded at 64 cents per USD 1. Government efforts to prioritise timely debt repayment have contributed to a recovery in its value. The minister also highlighted that the previous administration had sold the sukuk at a high interest rate, and that the current government’s adherence to timely repayment has reinforced investor confidence.

As of now, the sukuk is valued at approximately USD 90 per unit. The government has included the repayment in its 2026 budget and is undertaking the necessary measures to ensure that this debt obligation is met on schedule.