The government has paid USD 25 million in coupon payments to investors for the USD 500 million Sukuk sold by the former government.
The USD 25 million is the last coupon payment before the USD 500 million principal and accompanying coupon payment due in April next year.
In a brief statement, the Finance Ministry assured investors that the USD 525 million would be paid next year and noted that payments have been made without delay.
“Reaffirming emphasis on responsible debt management and preparing for the last sukuk settlement next year, the government will continue to take measures to maintain financial strength and debt service capacity,” the finance ministry said.
Although the ministry has assured that the sukuk will be repaid next year, the plan for it has not been implemented. The budget for this year stated that an additional sukuk will be sold as a refinancing measure.
It is unclear whether any refinancing efforts are underway with just five months left for the repayment.
The country's credit rating is the biggest obstacle to selling a sukuk. Major rating agencies have downgraded the Maldives to high risk of default.
In addition to the sukuk, the government has to repay USD 1 billion in debt next year. About the same amount will be spent on debt repayment and interest this year as well.
