Around MVR 9 billion is expected to be spent on debt repayment this year, with more than USD 100 million owed in foreign currency.
Maldives Monetary Authority (MMA) has initiated discussions for the purchase of a land plot in Hulhumale' to raise finances for the government.
According to reports by Mihaaru News the ongoing talks involve the Finance Ministry and have considered various figures, including MVR 8 billion, MVR 14 billion, and MVR 20 billion. However, the exact amount is still unclear, and it's uncertain whether the MMA board has approved the plan.
Major decisions regarding the purchase are expected to be finalized after a board meeting.
A source familiar with the matter said that the MMA is likely purchasing land in Hulhumale' as part of efforts to raise funds to pay off the government's debts, especially in light of a lack of external finance. Even if MMA purchases the land through the Housing Development Corporation (HDC), the money raised would go to the government, which could essentially be seen as printing money, he said.
MMA has not made any official statements regarding the matter yet.
The government faces large payments in the coming months, including a USD 25 million (MVR 386 million) coupon payment for government securities issued in 2021, as well as a T-bond issued through SBI. Other foreign parties are also due payments this year.
Around MVR 9 billion is expected to be spent on debt repayment this year, with more than USD 100 million owed in foreign currency.
To support its financial needs, the government has allocated USD 9.7 billion for budget support from foreign sources.
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