Maldives’ debt rises to MVR 126 billion

The state’s public and publicly guaranteed debt has risen to MVR 126 billion by the end of the first quarter of this year.

Information published on the Finance Ministry’s quarterly bulletin shows the state’s debt rose by MVR 1.4 billion within the first three months of the year.

The total debt had stood at MVR 124.8 billion at the end of last year.

The increase in the debt was mainly the result of a rise in domestic debt. The domestic debt, which stood at MVR 72.8 billion at the end of last year, rose to MVR 74 billion during the first quarter of this year.

Despite the increase in domestic debt, the external debt remains at MVR 38 billion.

Out of the total debt, the budgetary central government debt stands at MVR 112 billion, while the sovereign guaranteed debt stands at MVR 14 billion.

The sovereign guaranteed debt fell by around MVR 170 million during the first quarter. However, loans and bonds taken by the central government from the domestic market increased during the period.

The debt as a percentage of GDP stood at 116 percent at the end of last year. The figure contracted by 6.4 percent during the first quarter of this year, dropping to 110 percent.

According to the 2024 annual budget report, the state’s debt is projected to rise to MVR 131 billion at the end of this year – which is 114 percent of the country’s GDP.

According to the World Bank, the Maldives economy is expected to grow by 4.7 percent in 2024, lower than previous estimates, reflecting a moderation in growth momentum.

In its latest report released earlier this month, the global financial institute warned the country of the risks of rising public debt, stressing the urgent need for a comprehensive fiscal adjustment program.