Maldives government has acquired a cumulative total of USD2.4 billion (MVR37 billion) in loan facilities over the past 4 years.
According to the latest update from Ministry of Finance, Maldives government has acquired the most number of loans from India's EXIM Bank.
The collective total of loans acquired by the state from the bank was reported at USD1.2 billion (MVR19 billion), which includes the USD400 million (MVR6.2 billion) loan facility for the Thilamale' Bridge project and a credit line facility worth USD800 million (MVR12.3 billion).
Furthermore, state took the most number of loans during 2020. It was reported by the ministry that the government acquired a total of 18 different loan facilities during the year; mostly to combat against the economic regression led by the Covid-19 pandemic.
Meanwhile, the loans acquired in 2022 so far include USD50 million from Cargill Financial Service International (CFSI) and another USD18 million Islamic Development Bank (IDB); both acquired towards waste management projects.
Statistics further confirm that Yameen's administration had acquired a total of 18 loans worth MVR20 billion during Abdulla Yameen Abdul Gayoom's five-year presidential term.
As such, there was a notable 55 percent increment in foreign loans by 2022.
Ministry of Finance further reported that the state debt will rise to MVR103 billion by the end of the current year, which is an increment of 112 percent by percentage of the Maldives Gross Domestic Product (GDP).
While state debt continues to inflate with each following year, state's expenditure of loan repayments subsequently increase as well.
The ministry revealed that Maldives state will spend a total of MVR5.7 billion in 2022 as loan repayments.
Moreover, state is expected to make its highest loan repayment in 2026; which is reportedly MVR9.2 billion.
Sign In