Pres slams opposition for 'blatant lies' on sovereign default
"This country is a rich country. It has a lot of assets. Wherever you go today it is not difficult to borrow 1 billion, 2 billion or 5 billion”.
By
Aishath Fareeha Abdulla
The opposition is making blatant lies about the country going bankrupt and Maldives is sure to get the foreign aid it needs without any difficulty, President Ibrahim Mohamed Solih said on Monday.
Campaigning for Saturday's presidential election, the president is in H.Dh. atoll. Speaking at a rally in Kulhudhuffushi on Monday evening, the president said the opposition keeps talking about the country going bankrupt for political purposes and to deceive the people
The president responded to his rivals’ claims that Maldives is bankrupt when he campaigned in Thaa atoll as well. On that day, the president said that his rivals were making promises of things to be done at the expense of the state budget, because they know that Maldives is not bankrupt. Otherwise, his rivals are lying, he said.
The president reiterated on Monday that there is no obstacle to Maldives's debt repayment by 2026, and that it will be very clear to the rivals.
The president said he has not explained to his competitors how to service the debt.
"But we have a plan in place. Half of it has been refinanced. The work is already underway," he said.
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In 2026, Maldives will have to pay USD 800 million
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USD 100 million is an Abdu Dhabi Fund for Development (ADFD) loan; the payment can already be postponed
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The USD 500 million securities issued during the pandemic will also be paid; the money had to be taken because the state did not have the money to repay the Sunny Side bond issued by the previous government and to get the essential medicines and goods
The president said it is not difficult for the government to raise funds from foreign financial institutions.
"It's not difficult today to raise USD 1 billion or USD 2 billion," he said.
The lending agencies are confident that the money will be repaid by Maldives and the spending of the money is being made public, he said.
"This country is a rich country. It has a lot of assets. Wherever you go today it is not difficult to borrow 1 billion, 2 billion or 5 billion," he said.
"I am saying without a doubt that the loans will be repaid in full by 2026. Knowing this, our competitors are still deliberately trying to deceive the people”.
The president said he makes promises based on the amount of state revenue.
Maldives's lump sum debt in 2026 is:
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A USD 100 million (MVR 1.5 billion) loan from the Abu Dhabi Fund for Development (ADFD)
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In 2021, Maldives sold USD 500 million (MVR 7.7 billion) worth of securities
In addition to the Abu Dhabi Fund loan and issued securities, Maldives already owes an average of USD 150-300 million (MVR 2.3-4.6 billion) annually. Last year, Maldives had to pay MVR 6.1 billion (USD 398.5 million) in debt repayment and interest on loans. Maldives has spent USD 4 billion (USD 260 million) to repay its debt so far this year, according to the Finance Ministry.
With the current average annual debt, the total debt due in 2026 will be USD 1 billion.
Kulhudhuffushi will have bigger share in next government
Speaking in Kulhudhuffushi, the president said that if he is elected, the next government will undoubtedly have a large share of Kulhudhuffushi and the island will have full participation in that government.
The president said he would make Kulhudhuffushi the economic hub of the north.
“This region cannot be transformed without changing Kulhudhuffushi,” he said, adding that the HDh. Hanimaadhoo airport is being developed and Kulhudhuffushi will also be developed with it.
