Debt cannot be solved by the government alone: Nasheed

Former President Mohamed Nasheed has said that the issue of national debt is not something that can be solved by the current government alone.

As per the estimated state budget for 2026, MVR 12.9 billion will be spent on debt payments, with an interest of MVR 5.5 billion being included as well. A total of MVR 18.4 billion will be spent on debt payments alone.

This also includes the USD 500 million sukuk that was issued by the previous government, which needs to be paid this coming April.

Nasheed posted on X, stating that the issue of Maldives' national debt is something that cannot be solved by the current government alone, stating that it is a national issue.

"As the only thing that is being done with the debt funds that are taken at exorbitant rates is in paying back the previous debt, it is clear that Maldives has been caught in a debt trap," said Nasheed.

"The current government has repeatedly assured that they can pay national debts without defaulting."

There are talks that a loan from a private company will be taken at a high interest rate in order to refinance the sukuk that is to be paid on 25th April.

However, the government has not given any details regarding the sukuk arrangements.