The government has paid MVR 1 billion in loan repayments and interest so far this year, according to figures released by the Ministry of Finance.
Data from the ministry shows MVR 636 million has been used to repay loans, while MVR 412 million has been paid as financing costs or interest.
This year marks the largest debt repayment year in the Maldives’ history, with the country expected to pay MVR 18 billion in debt and financing costs.
The largest payment is scheduled for next month, when around USD 600 million (MVR 9.2 billion) will be paid to settle a sukuk.
Of the funds required for the sukuk repayment, USD 150 million will be drawn from foreign currency deposits in the Sovereign Development Fund (SDF).
The remaining amount will be refinanced after part of the sukuk is repaid. The government has said that the interest rate on any refinancing loan will not exceed nine percent.
According to the Finance Ministry, the country will need MVR 26.3 billion in financing this year to cover debt obligations and the budget deficit.
President Dr Mohamed Muizzu said at a press conference on March 2 that the USD 500 million (MVR 7.7 billion) sukuk issued in 2021 under the administration of former President Ibrahim Mohamed Solih will be repaid by April 8.
The president said the government would face no difficulties repaying the bond, noting that the country’s reserves stand at USD 650 million.
He added that discussions are also under way on foreign loans, with good progress so far.
