The Maldivian government is considering a $300 million (MVR 4.6 billion) loan to help manage upcoming debt payments and state expenses. High-level talks are currently underway between the government and financial institutions to secure this funding.
While the specific lenders and interest rates have not been made public, the Ministry of Finance is exploring this option to avoid a financial crunch next year.
The Maldives faces a record debt repayment schedule in 2026. The government recently proposed a MVR 64.2 billion budget for the year, with MVR 12.9 billion dedicated solely to paying off debt.
A major 'bullet payment' is due in April 2026, totaling roughly $600 million; this comprises a $500 million Sukuk reaching maturity and a $100 million private bond falling due.
The World Bank warns that when state-owned company debts are included, the total repayment for 2026 could exceed $1.1 billion.
The $500 million Sukuk was issued in 2021 to refinance previous debts (including the 2017 "Sunny Side Bond") and to cover revenue losses during the COVID-19 pandemic. Now, the current administration must find a way to settle or refinance these large sums.
President Dr. Mohamed Muizzu and Finance Minister Moosa Zameer have assured the public that the country will not default on its loans.
"We are paying our debts and planning for future ones without printing money or defaulting," President Muizzu said during a recent community meeting.
However, opposition leaders and international organizations like the World Bank remain concerned. They have called for a more transparent plan, as debt payments are projected to consume nearly 70% of total government revenue by 2026.
