News Desk
The Maldivian economy has turned a corner despite heavy strains caused by the conflict in the Middle East, with clear signs of recovery now emerging, Finance Minister Hassan Zareer said on Sunday night.
Speaking at the “Ahaa” public forum co-hosted by the President’s Office and state broadcaster PSM, Zareer revealed that the current administration has spent USD 1.4 billion on debt servicing over the past two and a half years up to 8 October.
“This year has been the toughest one for us,” Zareer said during the forum. “Looking at the remaining loan obligations, the success achieved so far means we will see relief moving forward.”
The minister noted that the Maldives started the year on a strong footing, recording a major boost in state revenue during the first quarter. However, the outbreak of the Middle East conflict drove up global fuel prices, forcing the government to spend far more on subsidies than originally planned. While MVR 2.9 billion was budgeted for subsidies this year, actual expenditure has already reached MVR 4.3 billion.
Addressing foreign debt concerns, Zareer highlighted that the government paid off a major USD 500 million sukuk on 2 April using funds from the Sovereign Development Fund (SDF) and national reserves.
He assured that with legislative measures now in place to boost foreign currency inflows, the country will not face massive debt repayments after this year. The minister insisted that upcoming debt obligations remain well within levels that the state can easily cover through its regular revenue streams.
