Auditor General's Office (AGO) claim Maldives government require MVR 30.5 billion to repay public debt in the prospective four-year duration.
The office, at the budget research committee of Maldives Parliament, claims their research indicates requirement for a long-term plan for debt repaying and management. The office further identifies highest repayment will be on 2025 and 2026.
Statistics indicate state will spend MVR 5.5 billion on debt repayment next year, while it will spend MVR 6.4 billion in 2024. Moreover, state is expected to spend MVR 8.9 billion in 2025 and over MVR 9 billion in the year after. This is an amount that has not been spent on debt repayment in the past 10 years.
AGO further noted state will spend one of its highest debt repayment amount in 2026.
"A large portion of this has to be paid as foreign debt. This requires long-term plans to mitigate refinancing based on interest rates and foreign market risks" Audit Office Director Mohamed Shaan said.
By the end of 2023, state debt is expected to surge to MVR 113.6 billion, which is 108 percent of the Maldives Gross Domestic Product (GDP).
With Maldives government aiming to repay its debt at comparatively higher thresholds in the following three-year period, state will achieve this through the Sovereign Development Fund (SDF). Maldives Monetary Authority (MMA) has also asked the government to expedite the approval of legislation to restrict the circumstances in which funds from SDF can be used for other purposes
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