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Only MVR 980 million spent out of the MVR 4.4 billion allocated for debt in 2021

Lamya Abdulla
05 December 2021, MVT 14:53
(FILE) State budget book for 2022: Maldives have allocated MVR 5.7 billion for budget repayment in 2022, an increase of approximately 18 percent compared to the amount that was allocated for 2021 -- Photo: Nishan Ali / Mihaaru
Lamya Abdulla
05 December 2021, MVT 14:53

Only MVR 980 million has been spent in repayment of loans the government had taken even though MVR 4.4 billion should have been spent this year.

According to statistics disclosed by the Finance Ministry, Maldives have only repaid 22 percent of the money allocated for debt repayment in 2021. MVR 4.4 billion was set aside in the state budget for this cause alone last year.

Maldives had paid only MVR 800 million in 2020 as well for the loans that needed repayment. This was due to the fact the debt Maldives was expected to repay in 2020 decreased by 25 percent as various foreign governments had reduced the amount the nation owed in light of the Covid-19 pandemic and the economic standstill the world faced.

This year's debt repayment includes paying off a large part of the USD 250 million bond sold in the international financial market.

Maldives' debt have increased significantly over the past four years, resulting in direct increase in the amount owed back by the nation as well. It is believed that Maldives' debt will be at an estimated MVR 91 billion by the time 2022 ends.

The state budget has included MVR 5.7 billion for debt repayment in 2022. This is an increase of 18 percent compared to the amount allocated for 2021. Approximately MVR 3.8 billion will be spent to repay foreign debts.

Maldives' debt repayment will only increase in the upcoming years, as it had to increase the amount of loans it took during the pandemic and due to high interest rates, according the debt portfolio outlined in the state budget book.

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