Former President Mohamed Nasheed has said the government is unlikely to be able to sell more Sukuk to meet its plan to pay USD 500 million (MVR 7.7 billion) due next year, with fears that the Maldives' Sukuk could default due to lack of funds.
In a post on social media X, Nasheed said there was no guarantee that another Sukuk would be sold as per the government's plan due to loss of investor confidence because of the deteriorating financial situation in the Maldives.
"Some experts suggest that the Maldives might be at risk of defaulting on its Sukuk bond, which could further erode investor confidence and make it harder for the country to secure new funding," he wrote.
Credit rating agencies such as Moody's and Fitch have downgraded the country's credit rating.
Last year, Fitch downgraded the credit rating because of the risk of default. Moody's maintained the country's "junk" rating in May this year, saying the government was not implementing strong measures to improve its financial situation.
