Minister Saeed: China Loan Repayments Deferred as Government Tackles Inherited Debt

Repayment schedules for loans from China have been deferred, while maturities on selected loans backed by sovereign guarantees have also been deferred, Economic Development, Transport and Trade Minister Mohamed Saeed has said.

In a video message posted on X, Saeed said the measures formed part of the government’s efforts to manage inherited debt burdens while leading the country through significant economic challenges.

ދާދިފަހުން ސަރުކާރުން ދެއްކި 50 މިލިއަން ޑޮލަރުގެ ލޯނާއެކު، މިހާތަނަށް ރައީސް ޑރ. މުޢިއްޒުގެ ސަރުކާރުން މުޅި ޖުމްލަ 1.34ބިލިއަން ޑޮލަރުގެ ދަރަނި ދައްކައިދީ ޤައުމުގެ އިޤްތިޞާދު ވެއްޓިފައިއޮތް ނުރައްކާތެރި އަނދަވަޅުންވަނީ ސަލާމަތްކޮއްފައި. މިއީ ނިމިދިޔަ ސަރުކާރުތަކުން އެކި… pic.twitter.com/BY0TSLMQFu

— Mohamed Saeed (@em_saeed) September 19, 2026

Saeed said the administration of President Dr Mohamed Muizzu had also fully repaid a USD 150 million loan facility to India. He said the facility had been secured by the previous Maldivian Democratic Party administration as budget support during a period of high public expenditure.

The minister rejected claims that the repayment would result in shortages of staple foods, fuel, cooking gas or other essential commodities. He said there were no obstacles to procuring essential imports and described reports suggesting otherwise as attempts to create uncertainty and affect market confidence.

The comments come amid continued attention on the Maldives’ foreign exchange position, public debt and the government’s ability to meet its external financial obligations.

Saeed said avoiding a default on the Maldives’ sovereign Sukuk obligations had been a priority for President Muizzu.

He said the government had completed the required repayments and was working to restore the country’s credit rating.

The minister said the administration was addressing debt obligations inherited from previous governments as part of wider efforts to tackle the country’s economic challenges.

Saeed also criticised continued discussion about the possibility of a sovereign debt default and expressed concern about English-language reports that he said could create negative perceptions of the Maldives among international audiences.

He warned that a decline in tourist arrivals or foreign investment could have wider economic consequences, given the importance of tourism and external investment to the Maldivian economy.

Saeed said the government’s ongoing measures would help ease foreign exchange pressures and expressed confidence that constraints on access to US dollars would be resolved as economic recovery progresses.

The government continues to face scrutiny over public debt, foreign exchange liquidity and its capacity to meet external financial obligations while maintaining imports and economic activity.