Maldives loan repayments hit MVR 8.67 billion in first four months of 2026

The Ministry of Finance and Public Enterprises reports cumulative loan repayments of MVR 8,666.9 million as of 14 May 2026, according to its Weekly Fiscal Developments report for week 19. The figure is 68 percent higher than the MVR 5,146.6 million repaid across all of 2025, and more than triple the MVR 2,306.4 million repaid in 2024, based on Ministry of Finance monthly fiscal data published by the Maldives Monetary Authority.

Year on year, the comparison is sharper. Loan repayments stood at MVR 2,522.1 million in the same period of 2025. The 2026 figure is up 243.6 percent.

MMA data independently verifies the drawdown

The scale of the repayment is reflected in central bank balance sheets.

The MMA Central Bank Survey indicates that net foreign assets fell from MVR 13,558.4 million at the end of March 2026 to MVR 4,947.0 million at the end of April 2026. That is a one-month decline of MVR 8,611.4 million, closely matching the Ministry of Finance loan repayment figure.

The MMA notes that the change in the central bank's net claims on the central government in April 2026 "mainly resulted from the decline in Sovereign Development Fund balances at the MMA", according to Table 7.1 of its Central Bank Survey.

Official reserve assets dropped from a record USD 1,331.78 million at the end of March 2026 to USD 717.90 million at the end of April 2026, a decline of USD 613.87 million in a single month, according to Table 12 of the MMA Reserve Data Template.

In the months leading up to the April obligations, the Sovereign Development Fund reached a record level. The fund's foreign currency balance had passed USD 350 million for the first time, and official reserves climbed to USD 1.3 billion by the end of March.

Sukuk and India loan account for the bulk

Two large settlements are responsible for most of the repayment outlay.

On 2 April, the government settled a USD 500 million sovereign sukuk that the previous administration had issued in 2021. The final disbursement totalled USD 524.68 million, comprising USD 500 million in principal and USD 24.68 million in accumulated profit, according to PSM News. The settlement was made using state reserves and the Sovereign Development Fund.

Speaking after the settlement, Minister of Economic Development, Transport, and Trade Mohamed Saeed said the repayment had averted a potential sovereign default and strengthened investor confidence. He said the timely repayment "gave a lot of confidence to many people who wanted to invest in the Maldives," including foreign investors and local businesses.

On 11 May, the government paid a further USD 50 million toward a USD 150 million loan secured from India by the previous administration in 2019. With an earlier USD 50 million paid in January 2024, the government has now discharged USD 100 million of the India loan, according to PSM News. President Dr. Mohamed Muizzu announced that the remaining USD 50 million is scheduled for 17 September.

Chief Government Spokesperson Mohamed Hussain Shareef later reaffirmed the September timeline. He said no development projects would be halted as a consequence of meeting loan obligations.

A multi-year escalation

The 2026 outlay caps a multi-year escalation in debt servicing. Annual loan repayments have risen from MVR 2.31 billion in 2024 to MVR 5.15 billion in 2025, on a path to substantially exceed both in a single year, based on Ministry of Finance monthly data.

The pattern is visible in the monthly series. Through 2024 and most of 2025, monthly repayments rarely exceeded MVR 700 million and often sat below MVR 200 million. The April 2026 outlay alone, dominated by the sukuk settlement, is estimated to have absorbed the equivalent of more than MVR 8 billion at MMA reference rates.

Tight surplus, heavy financing

Despite the heavy repayment schedule, the state budget recorded an overall surplus of MVR 118.2 million by 14 May. That is sharply lower than the surplus of MVR 1.35 billion in the same period of 2025.

Total revenue and grants reached MVR 16.78 billion, up 12.2 percent year-on- year. Total expenditure rose 22.4 percent to MVR 16.66 billion. Financing and interest costs were broadly unchanged at MVR 2.06 billion.

The approved 2026 budget sets total foreign financing at MVR 16,812.2 million and domestic financing at MVR 9,445.2 million, according to Table 6.1 of the Summary of Central Government Finance published by the MMA. Foreign financing alone is 39.9 percent higher than in 2025, reflecting the scale of refinancing required this year.

Transfers to the Sovereign Development Fund stood at MVR 923.3 million for the period to 14 May, up from MVR 776 million in the same window last year. The fund has been the central pool used to settle large foreign currency obligations.

What comes next

The September installment to India will be the next major test of the repayment program. The government has indicated that negotiations with the Abu Dhabi Fund for Development to roll over a USD 100 million bond have been completed, according to PSM News.

Officials say the policy framework includes redirecting foreign currency deposits into the Sovereign Development Fund and restructuring the Airport Development Fee. These measures aim to manage sovereign debt without placing further pressure on domestic households.

The Ministry of Finance publishes the Weekly Fiscal Developments report each week. The MMA publishes its monthly reserve data and Central Bank Survey on its statistics portal.