President Dr Mohamed Muizzu has stated that the Government has no intention of taking loans at high interest rates and will not secure financing on terms similar to those obtained by previous administrations.

Speaking at a press briefing held at the President’s Office, President Dr Muizzu responded to questions regarding reports that the Government was seeking to obtain high-interest external loans and planning to secure financing through the Bank of Maldives (BML) to service State debt.

In response, the President said there has been no plan at any point to obtain a loan through BML to repay State debt. He also outlined preparations underway to settle a USD 500 million Sukuk payment due in April.

President Dr Muizzu said that USD 650 million has been secured within the Sovereign Development Fund (SDF) and usable reserves. He noted that the Government intends to utilise funds held in the reserves and the SDF to meet the Sukuk repayment. 

“We do not have any plan to take a loan from BML to make this payment. When we combine the usable reserves and funds secured in the SDF, we currently have more than USD 650 million,” the President said.

He added that while several parties have proposed loan facilities to the Government, negotiations are ongoing and careful consideration is being given to interest rates. President Dr Muizzu emphasised that the Administration’s position is not to take loans at high interest rates.

“We are continuing negotiations. Our intention is not to obtain loans at high interest. That is why discussions are taking longer, as we are working to ensure rates do not reach double digits,” he said.