All eight presidential candidates have expressed confidence in meeting debt obligations when massive foreign loan repayments come due in 2026.
Asked about public debt at Saturday night's presidential debate, President Ibrahim Mohamed Solih said his policy for debt repayment over the next three years is refinancing the loans.
The Maldivian Democratic Party (MDP) candidate said his administration has a plan to repay the USD 800 million that comes due in 2026. Half of it will be refinanced with low-interest loans, he added.
"We know how to raise finances from the market. We have shown that during Covid," President Solih said.
People's National Congress (PNC) candidate Dr. Mohamed Muizzu said recurrent expenditure will be covered by tax revenue under his administration instead of overdrawing from the central bank. He pledged to end printing money for government spending and to lower the exchange rate.
Jumhooree Party (JP) candidate Qasim Ibrahim said his debt repayment policy was increasing business activity and securing USD 600 million as grant aid.
Qasim also pledged tax reforms, recovery of stolen assets and cracking down on corruption.
While independent candidate Umar Naseer proposed economic diversification to reduce the dependence on tourism, Faris Maumoon pledged to introduce a digital creative sector to increase state revenue.
All eight candidates included policies in their manifestos that would require significant government spending. The first question of the presidential debate focused on the economy with reference to the costly pledges.
World Bank records show that the Maldives owes more than MVR 6 billion in debt repayment.
