Minister of Finance and Planning Moosa Zameer has announced that the Government has secured a debt relief agreement with the Abu Dhabi Fund for Development (ADFD), allowing the deferral of a USD 100 million loan repayment.

Speaking at a press conference at the President’s Office, Minister Zameer said the loan relates to a sukuk issued by the Government in 2017 and later purchased by ADFD. He confirmed that discussions with the UAE Government have been concluded, resulting in an agreement to postpone the repayment.

The agreement had initially been planned for signing during an official visit, but will now be finalised through an online arrangement as part of efforts to reduce costs and respond to global economic conditions.

The Finance Minister said the deferment forms part of ongoing efforts to manage Government expenditure, noting that while some cost-reduction steps are not publicly disclosed, key measures are being implemented to ease the fiscal burden.

He added that similar relief has been secured from other bilateral partners. India has agreed to defer repayment on certain loans, while China has provided concessions on loan terms and debt servicing.

These efforts have significantly reduced the Maldives’ debt repayment obligations for the year. Initial projections of around USD 1 billion have been revised down to approximately USD 600 million.

The Minister also noted that fiscal consolidation measures introduced over the past two years, along with increased reserves and strengthening of the Sovereign Development Fund, have contributed to improving the country’s financial position.