President Dr Mohamed Muizzu has revealed that his administration has repaid approximately USD 1.29 billion in foreign debt over the past two and a half years, describing the figure as a reflection of the significant financial obligations inherited from previous governments.
Speaking at a ceremony in Dh. Meedhoo marking the People’s National Congress (PNC) victory in the election for President of the Meedhoo Council, President Muizzu outlined the scale of debt repayments undertaken by the government and highlighted the country’s broader fiscal challenges.
According to the President, the current administration has spent around USD 1.29 billion on servicing foreign debt since taking office. He contrasted this with repayment figures during previous administrations, noting that USD 428.68 million was repaid during the first two years of the Maldivian Democratic Party (MDP) administration, while USD 191.25 million was repaid during the corresponding period of former President Abdulla Yameen Abdul Gayoom’s government.
President Muizzu said the amount repaid by the current administration exceeds the figures recorded during the previous two governments, underscoring what he described as the scale of the financial burden facing the state.
Providing a breakdown of the repayments, the President said USD 891.2 million of the debt serviced by the current administration originated from liabilities accumulated between 2018 and 2023. Another USD 195.7 million related to debt incurred between 2013 and 2018, while USD 62.5 million stemmed from obligations accumulated between 2008 and 2013. A further USD 38.1 million was linked to debt incurred before 2008.
He said these figures demonstrate that the current government has been repaying debts accumulated under successive administrations over several decades.
Despite the progress made in reducing liabilities, President Muizzu noted that substantial debt remains outstanding. According to the figures he shared, USD 1.14 billion in debt originating from the 2018-2023 period remains unpaid, alongside USD 710.4 million accumulated between 2013 and 2018. Outstanding liabilities also include USD 150.4 million from the 2008-2013 period and USD 106.3 million incurred before 2008.
The President added that the current administration has itself accumulated USD 219.7 million in debt, which will be repaid in the future.
President Muizzu said the government remains committed to managing the country’s debt obligations responsibly while safeguarding national interests and maintaining economic stability.
He also highlighted improvements in key fiscal indicators, noting that the Maldives’ debt-to-GDP ratio has declined from 123.6 percent when his administration took office to 121.2 percent under the current government.
The remarks come as the government continues efforts to strengthen public finances, improve foreign currency reserves, and meet external debt obligations while pursuing its broader economic reform agenda.
