The government is close to finalizing a USD 300 million loan from Cargill Financial Services International (CFSIT) to pay off a huge debt this year.
Adhadhu first reported about the Cargill offer on December 28, 2025. At the time, there was no information, other than that discussions were underway.
According to reports, Cargill is offering the loan at a 14 percent interest rate. The government is now in the final stages of reaching a decision.
The decision has been delayed due to the high interest rate. It is twice the interest rate of the USD 100 million loan taken from Cargill by the Solih administration.
The loan was repayable over three years at an interest rate of 7.15 percent. The government paid off USD 126 million for the loan in March 2025.
Some people, including the unofficial X account of former President Mohamed Nasheed, have expressed concerns over the 14 percent interest rate.
The Muizzu administration previously issued a guarantee to the State Trading Organisation (STO) to borrow USD 50 million from Cargill.
The loan was taken to finance the import of medicines, staple foods and other essential items. But loan details are not available as the parliament committee to discuss the loans was held behind closed doors.
The budget for 2026 includes raising MVR 21 billion through debt. MVR 1.5 billion (USD 100 million) was listed as funds from potential financing partners, including Cargill.
Despite concerns about the high interest rate, experts say the current financial situation will make it difficult to borrow at lower rates.
The biggest challenge is the downgrade of the Maldives' sovereign credit rating by international rating agencies. Moody's and Fitch, the world's two largest rating agencies, have also downgraded the country to a non-investment category.
As long as this rating remains, it will be difficult to get a loan and sell a sukuk at a low yield. The only option is to get a loan from another state or from a lender at concessional rates, such as the World Bank and the International Monetary Fund (IMF).
