Gov’t Settles USD 50 Million Loan Taken Under Solih Administration

President Dr Mohamed Muizzu said the government has repaid a USD 50 million loan taken from India during former President Ibrahim Mohamed Solih’s administration, which he said was due on 11 May.

Speaking to journalists at the President’s Office, President Dr Muizzu said the loan formed part of a USD 150 million borrowing arrangement entered into by the previous administration through three separate USD 50 million loans in 2019. According to the President, the loans were taken on 17 March, 26 June, and 1 October 2019.

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President Dr Muizzu said the previous administration had continued to roll over the USD 150 million debt in subsequent years, including in 2020, 2021, and 2022. He said one USD 50 million portion had already been paid to India on 7 January 2024, while another USD 50 million payment, which was due in May, has now been completed.

The President said the remaining USD 50 million is due on 17 September and that the government intends to make that payment as scheduled. He presented the repayment as part of a broader effort by the current administration to manage debt obligations inherited from previous governments.

President Dr Muizzu also referred to other major obligations, including the USD 524 million sukuk and the USD 400 million currency swap, stating that the administration had addressed USD 974 million in debt-related commitments within 40 days.

“Therefore, in the last 40 days, we have paid off the total debt of USD 974 million for the Maldivian people,” President Muizzu said.

The government has framed the repayment as part of its wider debt management policy at a time when external financing, refinancing pressures, and investor confidence remain central concerns for the Maldives. The country’s debt position has drawn growing attention in recent years, particularly due to the scale of repayment obligations and the need to maintain fiscal stability while continuing public investment.

Responding to a journalist, President Muizzu said the government had received foreign assistance to repay debt, while avoiding high-interest loans and the mortgaging of state assets. He added that the administration’s economic policy has maintained a downward trend in borrowing overall.

President Dr Muizzu also raised concern over public remarks by individuals who had previously held senior state positions, saying such comments could create public unease and damage confidence in the economy. He said the government was working to clear debt obligations taken on by earlier administrations and would continue efforts to reduce the burden on the public.

“I am saddened by the statements made by those in high positions of the state, which have no basis, in order to destroy the Maldivian economy in a way that could create unrest among the people and generate a negative image of the Maldives,” President Muizzu said, noting that another reason that shocks him is that it was during their administration that the government had taken on the debt and that his administration was repaying it.

The repayment of the USD 50 million loan leaves another USD 50 million from the same borrowing arrangement still outstanding, according to the President. The next payment is expected to fall due on 17 September.