The government is preparing to secure a USD 100 million loan from the Abu Dhabi Fund. Finance Minister Moosa Zameer is scheduled to travel to the United Arab Emirates (UAE) to sign the loan agreement, part of a broader plan to manage the country’s growing debt.
This comes as the government explores borrowing USD 300 million from international financial institutions to repay existing debt and cover 2026 government expenses.
Record MVR 64 Billion Budget Approved for 2026
President Mohamed Muizzu’s administration has approved a record budget of MVR 64 billion for its third year. Out of this, MVR 12.9 billion is allocated solely for debt repayment, highlighting the financial pressure on the government.
Debt Repayments in April Total USD 600 Million
April will see major debt payments due, totaling USD 600 million (MVR 9.2 billion):
- USD 500 million sukuk due on April 8
- USD 100 million bond due on April 26
These repayments are part of the Maldives’ ongoing efforts to manage public and state company debt.
World Bank Projects Maldives Debt Exceeding USD 1 Billion
According to the World Bank, the Maldives is expected to spend over USD 1.5 billion on debt repayments in 2026, including obligations from some state-owned enterprises. This underscores the urgent need for the government to secure new loans and manage the national budget carefully.
