Financial sector experts state that repaying the $500 million due next year from bonds issued by previous governments will not be difficult, given the current financial situation of the Maldives. Abdulla Hassan, Strategic Consultant at BML, said that the central bank’s reserves hold over $800 million, and the Sovereign Development Fund also contains a reasonable amount of money. He further noted that arrangements have been made to refinance the $500 million sukuk (Islamic bond) due in April next year, and the Ministry of Finance has many plans in place for this.
Ali Wasif, Chief Finance Officer of Maldives Islamic Bank, also supported this view, stating that a significant portion of the debt, specifically bilateral debts, can be restructured for the Maldives. He added that these facilitations are possible due to the country’s good relations with other nations. Ahmed Thoriq, Member of Parliament for Mahibadhoo constituency, also remarked that despite former presidents claiming the country would “default” on its debt, the current government is consistently setting aside funds for debt repayment. Thoriq further stated that a large portion of the debt owed to major countries like India and China has been deferred following President Muizzu’s discussions, thereby alleviating any doubts regarding the country’s ability to repay its debts.
