Gov’t Clears USD 100 Million Loan, Paying USD 26 Million in Interest
Photo: The President’s Office
The current government has repaid a previously acquired USD 100 million loan along with USD 26 million in interest.
The loan, taken out during the previous administration, was borrowed from Cargill Financial Services International, a US-based agency offering trade finance and risk mitigation services. According to the Ministry of Finance, the loan was secured on March 24, 2022, to support the budget and provide cash injections to commercial and tourism sectors.
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The loan facility carried an interest rate of 7.15 percent, with a repayment deadline set for March 24, 2025. However, the government has now repaid a total of MVR 1.94 billion in local currency, which includes both the USD 100 million principal and the USD 26 million interest.
The Ministry of Finance confirmed to local media that the loan has been repaid, amid growing concerns over the Maldivian government’s ability to service its debts. Former President Mohamed Nasheed has claimed that the Maldives owed USD 150 million in external repayments as of March this year, with an additional USD 25 million due for repayment in April.
The government is required to pay a total of USD 800 million this year towards external debts, amounting to MVR 12-13 billion. In an effort to bolster its financial position, the government has announced plans to sell a Housing Development Corporation (HDC) plot to the Maldives Monetary Authority (MMA) for MVR 15 billion. This decision, made by the current administration, which campaigned on anti-overdraft policies, has attracted significant criticism from both the public and political opposition.
