Confident about Sukuk payment next year: President

While speaking to the residents of Sh. Bilehfahi last night, President Dr. Mohamed Muizzu stated that the government is not worried about the two loans to be paid off next year.

He also stated that the country's economy has been improving since the current administration took office.

President Muizzu began his visit to Shaviyani Atoll yesterday morning.

The President went on to say that the government conducts all their work in such a way that the country will not default, and to ensure Maldives' economy moves ahead at full speed.

"We are paying off all accrued debt, both local and international. Some of the debt has received concessions after holding discussions with neighboring states, such as refinancing, paying the debt at a later date or through compensation if need be," said President Muizzu when speaking on the government's plans on paying off debt and improving the economy.

"We are also seeing success in our work towards paying next year's sukuk payments. We have absolutely no worries regarding the sukuk payments."

The current administration has paid an interest of USD 25 million (MVR 386 million) regarding the USD 500 million (MVR 7.7 billion) that was sold during former President Ibrahim Mohamed Solih's administration in 2021.

The sukuk coupon payment for that needs to be paid in April and October each year, with the sukuk deadline being April 2026. With that, the final coupon of USD 25 million along with the total USD 500 million needs to be paid by April 2026.

President Muizzu said last night that their work ensures development of all Maldives' industries, with opportunities for locals to benefit.

In relation, the President highlighted the announcement he made on 2nd October, where "the money that is owed to various local parties for the work they have done during the previous administration" will be given to them within the next three weeks.

"Our reserve is also in a good state. All our work, including development, is moving smoothly. We have no concerns on moving forward," said the President.

During President Muizzu's visit to Mahibadhoo last week, Mahibadhoo MP Thoriq Ibrahim stated that the debt the current administration is trying to pay next year are from the two loans that were taken during former President Abdulla Yameen's administration and former President Ibrahim Mohamed Solih's (Ibu) administration.

He went on to say that Yameen and Solih stated the government will come to a "default" next year due to the USD 500 million debt not being paid. However, Thoriq said that the current administration is putting aside funds in order to pay the debt.

Thoriq highlighted that during Solih's government, PPM/PNC had requested mortgages not be taken out on places such as Aminiya School, Iskandar School and Olympus.

Thoriq said that Solih's government had sold a USD 500 million Sukuk to the international market in order to pay the USD 250 million Sunny Side bond that was taken during former President Yameen's administration.

He went on to say that the previous government withdrew USD 150 million through STO during Covid, when the economy was at its lowest point. He also said a large portion of that amount has been paid this year.