No challenges with Sukuk payments: Minister

There are no challenges when it comes to the repayment of the USD 25 million dollar sukuk required to be paid by the Maldivian government, assured Finance Minister Dr Mohamed Shafeeq today.

Speaking with Mihaaru News, the minister said that the first of the bi-annual coupon payments required to be made were cleared in last March, and that it was also a financially difficult time for the country, just like now.

Speaking further, the Minister assured that there are no difficulties in making the payment which is due on October 8.

After the sukuk matures in 2026, the full payment will be due. Along with next month's coupon payment, USD 50 million is required for next year, followed by USD 25 million as the following year's coupon payment.

Shafeeq said that the sukuk's value fell in the market due to the news of Maldives running out of its foreign reserves. However, he stressed that Maldives never actually ran out of its reserves.

The news of Sukuk's value drop, was even reported in the international media.

"The reserve is good now. MIRA's collection is also much better than before," the minister said.

He further added that even if the sukuk's value falls, it will rise again when the situation improves.

Former President Ibrahim Mohamed Solih's administration sold USD 500 million in sukuk's during 2021 in Abu Dhabi's stock market.

According to the latest Maldives Monetary Authority (MMA) figures, the government's official reserves stood at USD 395 million. To increase reserves, the government is working to arrange a USD 400 million currency swap facility through the Reserve Bank of India (RBI). They are also planning to sell a green bond.