President Mohamed Muizzu has announced that the Maldives repaid approximately USD 924 million in foreign debt within a span of just 21 days, describing the move as a major step in the government’s broader effort to stabilise public finances.
Speaking during a press briefing at the President’s Office, the President said the repayments were made without disrupting ongoing development projects or public services, and without placing additional strain on citizens.
Major External Obligations Settled
According to the President, the repayments included funds set aside for the USD 500 million Sukuk issued in 2021, as well as obligations linked to a USD 400 million currency swap facility agreed during his official visit to India in 2024.
He noted that the government had managed to settle nearly a billion dollars in foreign liabilities within the first three weeks of the month, while avoiding any risk of default.
The President also emphasised that the repayments were carried out without pledging new state assets as collateral. Instead, he said the administration has been working to recover assets that were previously mortgaged.
Domestic Payments Accelerated
In addition to external debt, the government has also been clearing outstanding dues to local companies.
Over the past six months, approximately MVR 3.3 billion has been paid to Maldivian businesses for completed projects. The President added that a further MVR 260 million is scheduled to be disbursed before the end of the current month.
He said payments are being issued to around 700 vendors on a weekly basis, covering work carried out under various ministries and state projects.
Balancing Debt and Development
President Muizzu stressed that the government’s approach focuses on meeting debt obligations while continuing economic activity and maintaining essential services.
He reiterated that the administration is not relying on new borrowing or additional mortgaging of state assets to meet repayments, but instead prioritising the settlement of existing liabilities.
Broader Economic Strategy
The President said the government is also engaging with international partners to explore opportunities for debt relief and more favourable financial arrangements, while strengthening diplomatic ties.
Officials say the strategy reflects an effort to balance fiscal responsibility with economic growth, ensuring that the country remains on track to meet its financial commitments without compromising development priorities.
The announcement comes amid increased attention on the Maldives’ debt levels, with authorities highlighting recent repayments as a sign of improving financial management and economic resilience.
