By the end of this year, total debt is estimated at MVR 139 billion, with an expected increase due to the need for funding to cover planned deficit budgets and debt refinancing.
Maldives state debt is projected to rise significantly, reaching MVR 150 billion next year, according to the latest figures from the Ministry of Finance.
By the end of this year, total debt is estimated at MVR 139 billion, with an expected increase due to the need for funding to cover planned deficit budgets and debt refinancing.
The Ministry said that next year’s debt will include government-guaranteed loans, pushing government debt to 124 percent of GDP.
Direct debt alone is projected at MVR 138 billion, which is not expected to fall below 95 percent of GDP in 2026 and 2027.
To address the rising debt burden, the Finance Ministry emphasized the importance of implementing reform measures to reduce government spending.
Without significant reductions in debt relative to GDP, the government will face challenges in managing expenses, impacting its ability to implement development projects and provide essential services.
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