The Maldives Monetary Authority (MMA) has stated that the enforcement of foreign exchange regulations has significantly assisted in the settlement of state debts. On the 2nd of this month, the government successfully settled the USD 500 million Sukuk issued in 2021, along with its coupon payments, totaling USD 524.68 million. This payment was facilitated through the utilization of official reserves and the Sovereign Development Fund (SDF).
The MMA highlighted that the reforms introduced to enhance foreign currency revenue and liquidity have strengthened the Maldives’ financial system and improved debt servicing capacity. These changes are a result of collaborative efforts between the government and state institutions. Furthermore, the mandatory accumulation of foreign currency in the SDF and revisions to airport fees were identified as key measures that bolstered debt repayment capabilities. The government’s current priorities include ensuring the uninterrupted delivery of essential services and the rollover of the USD 100 million bond due to the Abu Dhabi Fund.
