President Dr Mohamed Muizzu has stated that the previous administration had taken the sukuk by placing four key state-owned lands as collateral, but that the current administration has now secured those properties.
He made these remarks while speaking at a gathering held in Rasdhoo, Alif Alif Atoll to celebrate the success of candidates from the People’s National Congress (PNC) who contested in the recently concluded local council and Women’s Development Committee (WDC) elections in Rasdhoo, Thoddoo, and Ukulhas of Alif Alif Atoll.
The President said that the current government has repaid the USD 500 million sukuk taken by the previous government along with the USD 24.68 million interest without bankrupting the country. He added that this repayment was made through the government’s own efforts, without selling any additional state assets or taking on further external debt.
Although opposition figures have claimed that the sukuk has not been repaid, the President said that documentation proving the repayment is available at the Maldives Monetary Authority (MMA) and the Ministry of Finance and Public Enterprises. He reiterated that the sukuk had originally been taken by the previous government by pledging four important state properties as collateral.
“These four locations; Dharumavantha Hospital building, the land of Iskandhar School, the land of IGMH, and the Finance Ministry land, were all pledged. All of these places have now been secured,” the President said.
He further stated that there are other locations that had also been pledged in a similar manner, and that the government is working to secure those as well. He added that a significant amount of debt has been repaid over the past two years. The President also said that development projects worth USD 259.74 million have been awarded to hundreds of Maldivian companies for island development across the atolls, and that work on these projects is progressing. He expressed confidence that government efforts will continue with increased momentum in the future.
In 2021, the Maldivian government issued a USD 500 million sukuk to the international financial market. This sukuk was fully repaid on 2 April of this year. The sukuk had originally been issued in 2021 to refinance a USD 250 million “sunny side” bond taken by an earlier administration. The current government has now fully repaid that sukuk with interest.