Economic Development and Trade Minister Mohamed Saeed has criticised what he described as attempts to undermine confidence in the Maldivian economy, questioning why some appear disappointed that the country has continued to meet its debt obligations without defaulting.
His remarks follow the government’s repayment this week of the final $50 million instalment of a $150 million Treasury bill facility subscribed by the State Bank of India (SBI) in 2019.
Saeed said the latest payment brings the total amount of debt settled by President Dr Mohamed Muizzu’s administration to approximately $1.34 billion.
He described the repayments as part of the government’s efforts to steer the country away from the severe financial pressures it faced when the administration assumed office.
The minister also argued that settling obligations inherited from previous governments had helped protect state assets that had been pledged in connection with earlier borrowing.
Saeed took particular aim at claims that major debt repayments would leave the Maldives without sufficient foreign currency to maintain imports of food, fuel, cooking gas and medicine.
He characterised such statements as attempts to create uncertainty among the public and weaken confidence in the economy and domestic market.
Saeed maintained that the country has continued to import essential commodities without disruption and said the government expects supplies to remain uninterrupted.
The Finance Ministry issued a similar assurance following the latest SBI repayment, saying arrangements were in place to maintain foreign currency availability for essential imports.
According to the ministry, official reserves stood at approximately $644 million at the end of August. It also said debt repayments are being planned in advance through regular allocations to the Sovereign Development Fund and other financing arrangements.
The $150 million SBI facility was originally obtained in 2019 as budget support during former President Ibrahim Mohamed Solih’s administration.
It was repaid in three $50 million instalments under the current administration, with the first payment made in January 2024 and the final payment completed on September 17. The Finance Ministry says the facility has now been cleared in full.
Saeed said the government had also made progress in restructuring and extending other external obligations.
He pointed to assistance from China and the Abu Dhabi Fund for Development (ADFD), as well as arrangements involving state-guaranteed debt, as measures that have reduced immediate repayment pressures.
The government has previously announced that China agreed to restructure some existing loan obligations, while a $100 million bond issued by ADFD in 2018 was extended for another five years. President Muizzu outlined both arrangements in his Presidential Address in February.
Saeed said one of the administration’s major economic priorities has been preventing a sovereign debt default, meeting large repayment obligations and working towards improving the Maldives’ sovereign credit standing.
The Maldives has faced heightened scrutiny over its debt position in recent years, particularly because of substantial foreign currency repayments falling due over a relatively short period.
The government’s own debt figures show the scale of the challenge remains significant. Finance Ministry data placed budgetary central government external debt at approximately MVR 43.6 billion at the end of 2025, excluding other components of public and publicly guaranteed debt.
The administration has sought to build up the Sovereign Development Fund as a buffer for major foreign currency obligations. In February, President Muizzu said the SDF held more than $275 million, compared with a usable foreign currency balance of around $2 million when his administration assumed office.
Saeed also criticised opposition figures and others who, in his view, amplify negative international coverage of the Maldivian economy.
He argued that presenting the country internationally as financially unstable could discourage investors and tourists, with any resulting economic impact ultimately being borne by Maldivians.
Political disagreements over economic policy are legitimate, Saeed said, but argued that criticism should not extend to actions that could damage investor confidence or the country’s international economic interests.
The minister said opposition parties in other democracies can disagree with governments while still supporting developments that benefit their national economies.
His comments come as the administration increasingly focuses its public messaging on debt repayments and foreign reserve management, with President Muizzu also making economic stability and the management of inherited debt a central theme of his recent addresses.
In February, the President said gross official reserves had risen above $1.13 billion at that point and outlined debt restructuring, increased foreign exchange inflows and greater allocations to the SDF as key elements of the government’s strategy.
The Finance Ministry’s latest figures, however, put official reserves at approximately $644 million at the end of August following subsequent movements in reserves and debt obligations.
Saeed said the government remains focused on navigating those obligations while maintaining essential imports and economic activity, arguing that avoiding default amid the country’s repayment pressures should be viewed as progress rather than a cause for pessimism.eco
