The Maldives Airports Company Limited (MACL), the operator of the nation’s main gateway, has secured $56 million in new loans from the Bank of Maldives (BML) by mortgaging the runway of Velana International Airport (VIA) and land in Hulhule', the company’s latest audit report reveals.
According to MACL’s 2025 audit report, the company acquired four "working capital" loans from BML last year. These include $30 million taken in May, $10 million in August, $10 million in October, and $6 million in November.
The first of these loans was secured against the leasehold rights of land in Hulhule'. The remaining three loans were obtained under an agreement signed on February 1 last year, which mortgaged the leasehold rights of the airport’s runway, taxiway, and apron to the bank.
The three loans secured by the runway are demand loans with a five-year tenure, meaning the bank reserves the right to recall the full amount at any time. With these new facilities, MACL’s dollar-denominated debt to BML has surged by 92 percent, reaching $112 million. Of this total, $104 million was borrowed following the commencement of the current administration’s term.
In addition to the $56 million from BML, MACL also secured a $15 million loan from the Maldives Islamic Bank (MIB). This facility was obtained by pledging government bonds previously purchased by the company as collateral.
These substantial borrowings have pushed MACL’s financial position into a precarious state. The company’s total debt has climbed to MVR 16.6 billion ($1.08 billion), with 97 percent of that figure consisting of dollar-denominated obligations.
MACL is scheduled to repay MVR 1.46 billion in debt principal this year, alongside an additional MVR 693.3 million in interest payments.
While the company requires over $100 million annually to cover debt repayments and servicing costs, its available cash reserves in US dollars stand at just $13.5 million. In light of these figures, the audit report highlighted that the company’s continued operations are now entirely dependent on government support.
The decision to take out high-interest dollar loans has raised questions, particularly as MACL is a major foreign currency earner that pays a portion of its staff salaries in US dollars.
