The Government has repaid a USD 100 million loan secured by the previous administration from Cargill Finance, a private financial institution, to support state expenditures.

The loan was obtained at an interest rate of 7.15 per cent and structured for repayment over three years, with a total obligation of USD 126 million, including USD 26 million in interest. The full repayment was completed this week as part of the Government’s commitment to responsible fiscal management.

A Ministry of Finance and Planning official reaffirmed that the Government is steadfast in its efforts to maintain investor confidence by ensuring the timely repayment of foreign debt and upholding financial stability.

The previous administration had secured various loans to address budgetary constraints, contributing to a rise in public debt, which surpassed 120 per cent of GDP. Over a five-year period, total government debt rose by MVR 60 billion.

In 2022 alone, the state entered into eight loan agreements, amounting to USD 404.5 million (MVR 6.2 billion).

Since assuming office, the current administration has been actively working to manage and honour debt obligations. As part of these efforts, India has provided concessions on loan disbursements, while China has extended debt repayment relief and deferred certain obligations.