President: Maldives has USD 650M shored up to repay sukuk, can make the payment even now

The Maldives is fully ready to repay the USD 500 million sukuk maturing in April, says President Dr. Mohamed Muizzu, adding that the country has enough funds shored up to make an immediate payment in full, even now.

The Maldives has a staggering USD 1.1 billion in debt repayments due this year, including a USD 500 million sukuk and another USD 100 million payment due in April.

The current conflict in the Gulf, as the United States and Israel attack Iran and Tehran aims retaliatory attacks on Israel and Gulf Arab states that host US assets, has disrupted global trade and travel, heightening fears over the catastrophic impact it could have on the Maldivian economy – which is heavily reliant on tourism and imports – if the war drags on.

At a press briefing on Monday morning, President Muizzu said that the conflict in the Gulf poses risks to three main areas – tourism, oil imports and food imports.

He provided assurance that the government is taking measures to manage the situation.

President Muizzu also said that the Maldives is financially stable enough to honor its massive debt obligations despite the current situation.

This includes a USD 500 million sukuk that is due on April 8.

But President Muizzu said the country now has USD 650 million shored up to repay the sukuk, with USD 320 million in the Sovereign Development Fund and another USD 330 million in the usable reserve.

“In short, we have enough money to repay the sukuk even if we need to make the payment today itself,” he said.

President Muizzu said that this leaves the Maldives with the ability to easily repay the sukuk, with funds left to spare.