President Dr Mohamed Muizzu has said the current Administration has repaid USD 1.2 billion in legacy debt, describing the figure as evidence of the scale of the financial burden inherited by the Government.

Speaking at a ceremony in Dhaalu Meedhoo to celebrate the PNC's victory in the election for President of the Meedhoo Council, the President highlighted the amount spent on repaying foreign debt and detailed liabilities accumulated under successive administrations. He said the figures showed the depth of the economic challenges facing the country when the current Government assumed office.

President Dr Muizzu said the Administration has spent approximately USD 1.29 billion on foreign debt repayments over the past two and a half years. He noted that USD 428.68 million was spent on foreign debt repayments during the first two years of the MDP administration, while USD 191.25 million was repaid during the corresponding period of former President Abdulla Yameen Abdul Gayoom's administration. The President stated that the amount repaid by the current Administration exceeds the figures recorded during the previous two governments.

The President also broke down the USD 1.29 billion repaid by the current Administration according to the period in which the debt was accumulated. He said USD 891.2 million of the repayments related to debt incurred between 2018 and 2023, while USD 195.7 million originated from debt accumulated between 2013 and 2018. A further USD 62.5 million came from liabilities incurred between 2008 and 2013, while USD 38.1 million was debt accumulated before 2008.

He said the figures show that the current Administration has repaid debt accumulated under all previous governments. However, the President noted that substantial liabilities remain outstanding, including USD 1.14 billion originating from the 2018-2023 period, USD 710.4 million from 2013-2018, USD 150.4 million from 2008-2013 and USD 106.3 million from before 2008. He added that the current Administration itself has accumulated USD 219.7 million in debt that will be repaid in the future.

President Dr Muizzu reiterated that the Government is continuing efforts to address the country's debt obligations while prioritising national interests and maintaining economic stability. He also noted that the debt-to-GDP ratio had fallen from 123.6 per cent when he assumed office to 121.2 per cent under the current Administration.