The government has reaffirmed its commitment to clearing the remaining USD 50 million installment of a USD 150 million loan from the Indian government, with the payment scheduled for September this year.
The announcement was made by Chief Government Spokesperson Mohamed Hussain Shareef during the weekly press briefing, where he emphasised the administration's dedication to fulfilling the country's financial obligations inherited from the previous administration.
During the press conference with the Spokesperson, Hussain Shareef outlined the government's progress in managing external debt, stating that significant strides have been made in repaying loans acquired from various foreign countries during the preceding administration's tenure. He told journalists that the current administration is operating with a clear sense of responsibility toward Maldives' creditors, noting that fulfilling these obligations will improve Maldives' standing with international lenders and demonstrate the nation's commitment to prudent financial management.
The previous administration borrowed the full USD 150 million from India across three separate occasions in 2019. These loans were subsequently rolled over, transferring the repayment burden to the current government.
President Dr Mohamed Muizzu clarified that his administration has already retired USD 100 million of the original sum, with the most recent payment of USD 50 million having been processed on 11 May. The remaining balance of USD 50 million is targeted for settlement in September, marking the complete liquidation of this particular debt instrument.
The government's spokesperson moved to alleviate concerns that debt repayment might compromise essential development initiatives. Hussain Shareef explicitly stated that no development projects undertaken by Maldives would be halted or scaled back as a consequence of meeting these loan obligations. Instead, he explained that the administration's primary objective centres on strengthening the nation's overall financial position and economic resilience.