Fayyaz hits out 2026 bankruptcy concerns: Won't default; stronger economy than ever

Economic minister Fayyaz Ismail on Thursday responded to concerns by financial experts and opposition politicians that Maldives could go bankrupt by 2026 as it has to service a record amount of foreign debt.

Financial experts and some politicians have been expressing concern that Maldives will have to service a record USD 1 billion in debt to foreign creditors in 2026 alone. 

Speaking at the launch of the last part of the MDP manifesto focused on economic transformation, Fayyaz said that some people have been saying since this government took over in 2019 that the state will default.

"Since we took over in 2019, we have been defaulting. Every month the country goes bankrupt and has been defaulting. Now we are talking about going bankrupt in 2026. We have not defaulted," Fayyaz said.

"Covid has come and gone. We are not bankrupt. And we have a stronger economy than before”.

Hitting back at those who claim that the Maldives is on high debt, Fayyaz said that the critics have not shown a policy to save the country from debt.

"We are saying first of all, we are not bankrupt. This country can move forward with President Solih and our coalition," Fayyaz said.

Maldives's lump sum debt in 2026 is:

In addition to the ADFD loan and Sukuk, Maldives already has an average of USD 150-300 million (MVR 2.3-4.6 billion) annual debt service requirement. Last year, Maldives had to pay a total of MVR 6.1 billion (USD 398.5 million) in debt repayment and interest on loans. Maldives has spent MVR 4 billion (USD 260 million) to repay its debt so far this year, according to the finance ministry.

So with the current average annual debt, the total debt due in 2026 will be USD 1 billion.