The Government spent USD 596.6 million on debt repayments during the first six months of the year, according to fiscal statistics released by the Ministry of Finance and Public Enterprises.
The figures were published in the Ministry's Monthly Fiscal Development Report, which also projects total debt repayments of USD 836.6 million for this year.
The Ministry's fiscal statistics show that debt repayments during the first half of the year totalled USD 596.6 million, compared with USD 214.0 million during the same period last year. This represents an increase of 178 per cent.
Despite the sharp rise in debt repayments during the first half of the year, expenditure on debt servicing declined last month. During June, the Government spent USD 18.7 million on debt repayments, compared with USD 45.2 million in the same month last year, a decrease of 58 per cent.
The Government has also used funds deposited in the Sovereign Development Fund (SDF) to repay major loans this year.
The Sovereign Development Fund was established by the Government to repay large loans taken to respond to emergencies and finance development projects, as well as to cushion losses arising from economic shocks. The fund is separate from the foreign currency reserves held by the Maldives Monetary Authority (MMA).
Established in 2016, the Sovereign Development Fund receives contributions from three Government revenue sources.
These include revenue generated from the Airport Development Fee collected from departing passengers, dividends paid from the Government's shareholding in Maldives Airports Company Limited (MACL), which operates Velana International Airport, and additional revenue generated through increased charges for selected airport services.