The Maldives repaid its USD 500 million sukuk issued in 2021 as part of a strategic move, with benefits expected to be reflected in the country’s medium term debt position, Minister of Finance and Planning Moosa Zameer has said.
The Maldivian government fully repaid its largest debt to date on 2 April, ahead of its maturity, without taking on new debts. The repayment has reduced external debt levels.
At a press conference held by the Special Cabinet Committee, formed in response to the ongoing tensions in the Middle East, the Finance Minister said debt repayment has been a key focus over the past five years. Since President Dr Mohamed Muizzu took office, he has prioritised strengthening the economy and improving debt repayment capacity, he added.
The minister noted that the sukuk payment was made amid the Middle East war, and therefore, immediate benefits are limited due to global uncertainty. However, the government expect clearer gains after the conflict stabilises, he noted.
He also noted that credit ratings for the Maldives were downgraded due to concerns over the country’s ability to repay the sukuk, with agencies flagging bankruptcy risk. With the repayment, the ratings are expected to improve over time.