President Dr Mohamed Muizzu said today that financing facilities obtained to repay the government’s sukuk have been secured at interest rates of less than nine percent, ensuring repayment without placing an undue burden on state finances.
Delivering his presidential address in Parliament, President Muizzu said one of his top priorities upon assuming office was identifying sustainable means to repay the USD 500 million (MVR 7.7 billion) sukuk issued by the previous administration.
He said the government’s approach was guided by the need to protect long-term fiscal stability and avoid measures that could negatively affect future state finances.
According to the President, interest rates under the bond policies of the previous two governments had risen to double-digit levels, with the sukuk carrying an interest rate of 10.5 percent.
“The USD 150 million from the sukuk due in April this year will be repaid using foreign currency deposited in the Sovereign Development Fund (SDF),” he said.
President Muizzu assured Parliament that the interest rate on any new government borrowing undertaken so far would not exceed nine percent.
“The sukuk will be repaid in a manner that ensures debt sustainability, reduces the burden of repayment, and restores fiscal and debt stability,” he said.
Despite challenging global economic conditions and significant debt obligations, the President said the Maldives’ financial position had improved. He noted that the country currently holds USD 1.1 billion in foreign reserves, marking the highest level of reserves recorded in the nation’s history.
