Government secures USD 81.3 million in loans so far this year

The government has taken out USD 81.3 million (MVR 1.3 billion) in three loans since the beginning of 2025, according to the Finance Ministry.

Two of the loans, totaling USD 64 million (MVR 992 million), were signed with the Islamic Development Bank on February 27 for a fisheries development project.

In addition, the government secured a USD 17 million (MVR 262 million) loan from the Saudi Fund for Development on April 14 to finance works at Velana International Airport.

The government’s 2025 budget requires about MVR 10 billion in financing. The loans taken so far account for around 13 percent of that requirement.

Last year, the government borrowed USD 334 million (MVR 5.2 billion) through nine loans. The largest of these was a USD 150 million (MVR 2.3 billion) facility from the Saudi Fund for Development for the Velana Airport expansion.

The Finance Ministry said total state debt stood at MVR 139 billion by the end of last year. The 2025 budget projects debt to rise to MVR 150 billion, equal to 124 percent of GDP.

World Bank said that, with currency swap arrangements included, government debt this year could reach USD 1 billion (MVR 15.4 billion).