Only MVR 980 million was spent to repay government loans while MVR 4.4 billion should have been spent this year.
According to statistics released by the Ministry of Finance, the Maldives only repaid 22% of the money allocated for debt repayment in 2021. MVR 4.4 billion has been set aside in the state budget for this. single cause last year.
The Maldives had only paid 800 million MVR in 2020 also for loans that were due to be repaid. This was due to the fact that the debt the Maldives had to repay in 2020 decreased by 25%, as various foreign governments had reduced the amount owed by the nation in light of the Covid-19 pandemic and the economic shutdown to which the world was facing.
This year’s debt repayment includes the repayment of much of the $ 250 million bond sold in the international financial market.
Maldives’ debt has increased dramatically over the past four years, resulting in a direct increase in the amount owed by the nation as well. The Maldives’ debt is believed to rise to around MVR 91 billion by the end of 2022.
The state budget included 5.7 billion MVR for debt repayment in 2022. This is an increase of 18% over the amount allocated for 2021. About 3.8 billion MVR will be spent to repay foreign debts.
Maldives’ debt repayment will only increase in the years to come, as it has had to increase the amount of loans it took out during the pandemic and due to high interest rates, according to the portfolio of the Maldives. debt described in the state budget.