President: No concerns about payment of USD 500 million sukuk

Maldives has no concerns about paying its USD 500 million (MVR 7.6 billion) sukuk due in April next year, President Dr Mohamed Muizzu said on Monday evening.

During his tour of Shaviyani Atoll, the President visited Bilehfahi and met with residents. Speaking at a public meeting held on the island, he said his government is working to improve the economy.

He said the government is paying off external and domestic debts and is seeking loan concessions in consultation with some countries. The President noted that India and China will ease their loans this year.

The President reiterated that efforts to repay the USD 500 million sukuk are progressing successfully.

On the second day of this month, he had announced that the government would settle outstanding debts to private businesses within five weeks. On Monday evening, he reaffirmed that commitment.

He said bills for all works done by agencies for Maldivian companies will be paid within the next three weeks.

The President added that the state reserve is in good condition, and there is no concern in achieving development.

He emphasized that Maldives will not default, despite growing concerns about national debt. The country is expected to pay USD 500 million this year and USD 1.1 billion next year.

Former Presidents Abdullah Yameen Abdul Gayoom and Mohamed Nasheed have previously warned that the country’s economic situation could lead to loss of investor confidence and potential debt default. However, the government has repeatedly stated its confidence in repaying the debt.