Maldives repays $50 million debt to India
Following the latest repayment, the remaining USD 50 million is scheduled to be settled on 17 September.
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President Mohamed Muizzu announced on Monday that the government has repaid a USD 50 million debt owed to India.
The payment formed part of a USD 200 million budget support arrangement provided during the administration of former President Ibrahim Mohamed Solih through Treasury Bills.
USD 100 million from the arrangement had remained outstanding. A USD 50 million repayment due in May last year had previously been extended for one year.
Speaking at a press conference held at the President's Office, Muizzu said the government had repaid a total of USD 974 million in debt over the past 40 days.
“We are consistently settling the debts incurred by previous administrations. To date, we have repaid USD 524 million in Sukuk and completed a USD 400 million currency swap repayment. Additionally, we have today settled the USD 50 million loan payment that was due,” the President said.
Muizzu stated that the government was working to reduce the debt burden inherited from previous administrations.
According to details shared during the press conference:
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the previous administration obtained USD 50 million in three separate tranches on 17 March, 26 June and 1 October 2019;
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the total USD 150 million was repeatedly rolled over under the former administration;
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the current administration repaid USD 150 million during 2024; and
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the remaining USD 100 million continued under rollover arrangements.
Following the latest repayment, the remaining USD 50 million is scheduled to be settled on 17 September.
The President also criticised remarks made by former senior state officials regarding the economy, in comments that appeared directed at former President Mohamed Nasheed following his recent interview with Indian media.
“Their administration took these debts, and I am the one paying them off. Yet, they seem concerned that we are making these payments,” Muizzu said.
He added that the government would continue repaying debts while also maintaining salary payments, fuel purchases and other public services.
According to the government, interest payments on the USD 100 million Treasury Bills issued through State Bank of India (SBI) are being covered by the Indian government.
The government also noted that India had previously waived USD 50 million from the original USD 200 million support package provided in 2019.
