President Dr Mohamed Muizzu said his government has paid more debt in 2.5 years than the previous two governments paid in five years.
He made the remarks at a rally celebrating the ruling party, People’s National Congress (PNC)’s victory in the election held to choose a President for the Meedhoo Council.
In his address, the President presented debt repayment figures from different administrations. While the figures show that the current government has repaid USD 1.29 billion in 2.5 years, the former government repaid USD 953 million in 5 years. He noted that government before that had repaid USD 418.18 million over five years.
Providing details on repayments by the current administration, the President said the government paid USD 4.9 million of loans taken by his administration. Repayments also include USD 891 million inherited from the previous administration, and USD 195 million from the administration before that. It also includes USD 62.5 million repaid for loans borrowed during the administrations of former Presidents Mohamed Nasheed and Mohamed Waheed. Additionally, USD 38.1 million from loans borrowed by President Maumoon Abdul Gayyoom’s administration has also been paid.
The President also listed further repayments across different administrations. While USD 239 million remains from loans borrowed by the current administration, USD 1.14 billion remains from the former government’s loans, he noted. Additionally, USD 710 million remains from loans by the government before that, and USD 150.4 million from loans borrowed by President Nasheed and Waheed’s administration.
According to the President, the total external debt as a percentage of GDP was 51.3 percent by the end of 2023. As of end of May this year, this percentage has been lowered to 44.5 percent he said, adding that this figure is a reduction of 6.89 percent.
The President further noted that the government’s direct debt was at 108.8 percent as a percentage of GDP by end of December 2023. However, this changed to 104.8 percent as of end of May this year, he said, bringing a reduction of four percent in 2.5 years.