President Mohamed Muizzu has announced that the government repaid a $50 million foreign loan due on May 11, describing the settlement as part of broader 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 an ongoing repayment programme targeting loans taken during previous administrations.
Origins of the Debt
According to the President, the loan repaid today was one of three separate $50 million facilities obtained from India in 2019, during the administration of former President Ibrahim Mohamed Solih. He said the previous government had repeatedly rolled over the combined $150 million debt in 2020, 2021, and 2022.
Muizzu noted that his administration has already repaid one $50 million installment in January 2024, with a second installment settled today. As a result, 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.
Wider Repayment Efforts
The President further stated that the government had cleared nearly $974 million in debt obligations within a 40-day period. According to the administration, this includes the repayment of a $524 million Sukuk and a $400 million currency swap arrangement.
Muizzu described the debts inherited from the previous administration as a “debt trap,” adding that the current government is working to ease the financial burden on citizens.
Criticism of Public Commentary
The President also criticised individuals who previously held senior government positions, saying their public remarks create unnecessary concern regarding the economy and the country’s financial stability.
He expressed frustration over what he described as negative narratives surrounding the economy, while emphasising that the government remains focused on meeting its repayment obligations and maintaining economic stability.
