The Maldives has failed to secure USD 33.7 million in financing from the World Bank, Hulhumalé South MP Ahmed Shamheed revealed on Tuesday, raising fresh concerns over the government’s handling of the country’s finances.
In a post on X, Shamheed said the money was lost due to weak fiscal planning and poor debt management by the Muizzu administration.
“There are reports that USD 33.7 million — around MVR 519 million — under the World Bank’s Sustainable Development Financing Policy has been lost,” he said.
Shamheed noted that in many democracies, such a failure would not pass quietly. “If this happened in another country, parliament would already be debating a no-confidence motion against the minister responsible,” he said.
The disclosure comes as the government moves ahead with its largest-ever budget, totaling MVR 64 billion for its third year in power. Nearly MVR 12.9 billion has been earmarked for debt repayments in the 2026 budget alone.
The strain will be felt most sharply in April, when the state must find USD 600 million to meet external debt obligations. This includes a USD 500 million sukuk due on April 8, followed by a USD 100 million bond maturing on April 26.
The World Bank has warned that total debt repayments this year will exceed USD 1 billion once liabilities tied to state-owned enterprises are factored in.
To keep the budget afloat and cover the widening deficit, the government needs MVR 26.2 billion in financing. At the same time, the Finance Ministry has acknowledged that borrowing from the domestic market has surged by MVR 19 billion in just two years.
As external financing slips away and debt pressures continue to mount, questions are growing over how long the government can keep the economy afloat on its current path — and what the cost will be for ordinary Maldivians.
