President Mohamed Muizzu has announced that the government successfully repaid a $50 million foreign loan due on May 11, describing it as part of ongoing efforts to reduce the country’s debt burden.
Speaking to reporters at the President’s Office, Muizzu said the payment was made this morning and forms part of a broader repayment programme targeting loans taken during previous administrations.
According to the President, the debt was one of three separate $50 million loans obtained from India in 2019 during the administration of former President Ibrahim Mohamed Solih.
He stated that the previous government had repeatedly rolled over the $150 million debt in subsequent years, including 2020, 2021, and 2022.
Muizzu noted that since taking office, his administration has already repaid one $50 million installment in January 2024, with another installment settled today. As a result, he said only $50 million now remains from that specific debt, which is scheduled for repayment in September this year.
“After a series of rollovers, we have now paid another $50 million. Only $50 million remains, and we will settle that as well,” the President said.
The President further claimed that the government had cleared nearly $974 million in debt obligations within a 40-day period. This includes the repayment of a $524 million Sukuk and a $400 million currency swap arrangement, according to the administration.
Muizzu described the debts inherited from the previous administration as a “debt trap,” stating that the current government is working to ease the burden placed on citizens.
He also criticized individuals who previously held senior government positions for making comments that, in his view, create unnecessary public concern regarding the economy and the country’s financial stability.
The President expressed frustration over what he described as negative narratives surrounding the economy, while emphasizing that the government remains focused on meeting repayment obligations and maintaining economic stability.
