Maldives' debt crosses MVR 100b at 2022 end
According to finance data, the government has taken eight new loans in the last one year.
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By
Ahmed Naif
At the end of last year, state debt had crossed MVR 100 billion, according to data released by the finance ministry.
According to data released by the finance ministry on Wednesday, the state's total debt, including sovereign guarantees, rose to MVR 101.1 billion at the end of the third quarter of last fiscal.
As the figures for the last quarter of the financial year have not been made public yet, it is not clear how much direct debt was at the end of last year. However, it will definitely cross MVR 100 billion.
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Debt rose by MVR 2.6 billion in nine months
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External debt of MVR 44.5 billion; that is equivalent to 47% of GDP
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Domestic debt owed to Maldivians stood at MVR 56.6 billion; that is 59% of GDP
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The country's total debt as a percentage of GDP stands at 106 per cent
According to finance ministry data, the government has taken eight new loans in the last one year. Thus, the biggest loans taken are:
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USD 100 million (MVR 1.5 billion) raised by Cargill Financial Services International (CFSIT) for budget support
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101.8 million Euros (MVR 1.7 billion) taken from three European banks to reclaim Gulhifalhu
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USD 100 million (MVR 1.5 billion) from Export-Import Bank of India (Exim Bank)
Other loans taken are:
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USD 22.6 million from Islamic Development Bank to upgrade water supply, energy and fisheries in Male
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18.4 million Euros (MVR 302.9 million) from the European Investment Bank to build Covid facilities
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USD 40.1 million (MVR 660 million) from Exim Bank of India to set up police stations
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USD 3.4 million (MVR 52.5 million) from World Bank to improve the education system in the Maldives
Debt from others, which the government is responsible for, also stands at MVR 13.8 billion. The government has given four completely new sovereign guarantees to state-owned companies. Last year, STO was given a sovereign guarantee of USD 244 million.
In addition to this:
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Sovereign guarantee of USD 25 million to purchase materials for Velana International Airport (VIA) development project
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MMA gets USD 200 million guarantee for currency swap deal with Reserve Bank of India
Last month, the government had spent MVR 615.6 million on repayment of loans and interest on loans. It is estimated that MVR 5.5 billion will be spent on debt servicing in the current fiscal year.
