The government's securities debt has surpassed MVR 100 billion, following a transaction where the Maldives Pension Administration Office (MPAO) sold bonds to the Maldives Monetary Authority (MMA) and reinvested the proceeds into new government bonds, according to Finance Ministry statistics.
The Weekly Fiscal Development reports released by the ministry indicate that this transaction caused bond debt to rise from MVR 28.6 billion to MVR 33.6 billion. This increase is attributed to bonds issued with repayment periods ranging between five and ten years.
While securities debt has now reached MVR 100 billion, it had previously dipped to MVR 95 billion in April following a sukuk payment. Prior to the recent bond transaction with the Pension Fund, total securities debt stood at MVR 97.3 billion.
The amount of domestic borrowing by the government is several times higher than the financing targets set in the approved budget for this year.
The budget had projected MVR 5.1 billion in financing through domestic securities and loans. However, by this point in the year, domestic market debt has already increased by MVR 8.2 billion.
Official figures from the ministry show that MVR 8.9 billion was borrowed from the domestic market in 2024, following MVR 8.6 billion in 2025. Including the amounts borrowed so far this year, the current administration has incurred over MVR 25 billion in domestic debt during its term.
Approximately 97 percent of the Maldivian government's securities debt is held domestically. These securities are sold to commercial banks and institutions such as the Pension Fund. Under the current administration, state-owned enterprises have also been directed to invest in Treasury bills and bonds at levels unprecedented in previous governments.
The government’s heavy reliance on the domestic market to cover expenditures stems from a consistent inability to secure budget financing through planned channels.
