The government has repaid USD 924 million in foreign debt obligations over a twenty-one-day period, President Dr Mohamed Muizzu announced at a press conference at the President's Office. Providing a comprehensive update on the nation’s financial progress, President Muizzu underscored that the administration is actively settling both domestic and international liabilities without disrupting essential government services. According to initial figures, these disbursements align with a broader economic effort that saw USD 214.21 million allocated toward outstanding obligations to local companies within a six-month period.
The recent settlements, processed within the first three weeks of the month, encompass the repayment of a USD 500 million sukuk issued in 2021 and a USD 400 million currency swap facility formalised during President Muizzu’s state visit to India in 2024. "Within a span of approximately twenty-one days, our administration has repaid nearly a billion dollars," President Muizzu stated. "We have fulfilled these debt obligations without subjecting the citizens to any risk of default, and without utilising any new fixed assets or collateral; instead, we have successfully recovered properties that were previously mortgaged."
The president noted the administration is revitalising the economy alongside these efforts. "This commitment is not limited solely to our foreign debt," he said. "We are concurrently settling our domestic financial obligations as well. We are remitting payments for the work that has been executed by various contractors and individuals."
Beyond the USD 214.21 million already disbursed to local firms, the government is scheduled to release an additional USD 16.87 million before the month’s end. "We have now successfully disbursed payments for the services rendered through various companies and ministries," President Muizzu noted, adding that funds are released to approximately 700 vendors weekly. "For the remainder of this current month, we are prepared to settle roughly MVR 260 million [USD 16.87 million] in outstanding invoices, specifically targeting the contractors who are executing diverse development projects across the Maldives."