MVR 2 billion spent on loan repayment: Finance Ministry

Maldives’ government has spent MVR 2 billion on loan repayments so far this year.

Statistics published by the Finance Ministry show that the government has to pay back MVR 2.8 billion of state loans this year. With the payment of MVR 2 billion, the remaining loan amount for 2022 stands at MVR 800 million.

MVR 3.3 billion will have to be spent from the state budget for repayment of loans next year. In 2024, MVR 3.6 billion is due to be paid off. The government has to spend a total of MVR 5.7 billion this year to pay off its debts. This is about 30 percent of the state's revenue.

The state debt has risen to MVR 100 billion so far this year, which is expected to reach MVR 103 billion by the end of 2022. This is 112 percent of the country's GDP.

Finance Minister, Ibrahim Ameer has said that the Maldives will have to pay the most significant amount in debt repayment in 2026. In 2026, the government is due to pay off USD 600 million (MVR 9.2 billion) due to the government having to pay off the USD 500 million (MVR 7.7 billion) Sukuk or Islamic bond it took out in 2021.