The government has successfully repaid USD 50 million of the USD 150 million loan originally obtained from India by the previous administration, President Dr Mohamed Muizzu has announced.
The repayment represents a significant milestone in the nation's ongoing efforts to eliminate inherited debts and strengthen the country's financial position.
Briefing local journalists during the weekly press conference, President Muizzu revealed that the previous government secured the USD 150 million loan from India through three separate transactions in 2019. When the current administration assumed office, it inherited these financial obligations, which have since been subject to strategic repayment initiatives. To date, the government has paid USD 100 million toward this particular debt, demonstrating its commitment to fiscal responsibility and debt reduction, the President added.
President Muizzu provided a detailed breakdown of the repayment timeline, explaining that the USD 50 million installment paid on 11 May joined an earlier USD 50 million payment that had been settled in January 2024. With USD 100 million now fully discharged, the remaining USD 50 million is scheduled for settlement on 17 September of this year, and President Muizzu assured the public that the necessary arrangements are in place to honour this final commitment.
The President used the occasion to emphasise the broader context of the government's debt repayment strategy, revealing that the Maldives has repaid a staggering USD 974 million in various obligations—including sukuk instruments, currency swaps, and loans—over the past 40 days alone. This substantial achievement underscores the administration's determination to relieve the nation of burdensome financial liabilities that have accumulated over previous administrations.
"We are doing these things for the benefit of the people, to get rid of the debt. Hopefully in the future, we will continue to liberate the people from such huge debts,” he said.
The President expressed regret that certain individuals who have previously held high-ranking positions in government have been making unfounded statements designed to create public unrest and damage the country's international reputation.
He called upon these figures to cease such counterproductive behaviour and refrain from undermining the nation's economic recovery efforts at a critical juncture in its financial history.