The debt borrowed from the domestic market has increased by MVR 13 billion in the 1.5 years since President Mohamed Muizzu took office, according to figures from the Finance Ministry.
According to the latest debt bulletin report, the government relies almost entirely on the domestic market for its financing needs.
The domestic market accounted for 77 percent of the MVR 16.9 billion increase in government debt from January 2024 to June 2025.
The largest amount was taken from commercial banks. During the last six quarters, the amount owed to banks increased by MVR 6.7 billion to a total of MVR 34.6 billion.
The second largest increase was in debt from other financial institutions. That amounts to MVR 4.4 billion with a total of MVR 31 billion.
Increase in domestic debt from January 2024 to June 2025
- Banks - MVR 6.7 billion
- Other financial institutions - MVR 4.4 billion
- Private enterprises - MVR 469.7 million
- Public companies - MVR 2 billion
Of the MVR 85.8 billion in direct domestic debt as of the second quarter of this year, MVR 70.2 billion is payable in Maldivian Rufiyaa.
The amount owed in dollars stood at MVR 15 billion, which is about USD 100 million. The remaining MVR 443.5 million came from special drawing rights.
The government has spent MVR 7.2 billion in 1.5 years to pay off debt. That is MVR 2.9 billion for principal payments and MVR 4.2 billion for interest and other expenses.
