The current administration’s expenditure in USD toward servicing national debt has significantly surpassed the combined payments of the previous two governments over a similar timeframe, Minister of Finance and Public Enterprises, Hassan Zareer has announced.
During a press conference at the President's Office, providing a breakdown of historical spending during the first two and a half years of recent terms, Minister Hassan Zareer highlighted that President Abdulla Yameen’s administration spent USD 191 million on loan repayments, while President Ibrahim Mohamed Solih’s administration paid USD 428 million.
In contrast, under incumbent President Dr Mohamed Muizzu’s administration, debt servicing has surged to USD 1.29 billion. The Minister noted that 56 percent of state reserves are currently being utilised for debt repayments, which includes the complete settlement and clearance of a USD 500 million Sukuk issued in the international financial market in 2021.
Despite the heavy debt burden, the Minister reassured the public that state foreign currency revenues continue to support vital national priorities. These allocations include providing dollars for citizens traveling abroad for medical treatment, paying fees for Maldivian students studying overseas, supporting local businesses, and securing essential imports such as fuel and gas.
Minister Hassan Zareer emphasised that the administration is closely managing financial pressures, prioritising both full compliance with international debt obligations and the uninterrupted availability of essential commodities for the public.