The Minister of Finance and Public Enterprises, Hassan Zareer has told Parliament that the systematic settlement of state debt is already paying dividends in the form of heightened investor confidence.
Speaking in response to a query from Fuvahmulah South MP Ibrahim Hussein, Minister Zareer highlighted the landmark repayment of the USD 500 million sukuk issued by the previous administration in 2021.
That was the largest single tranche that have been cleared to date, where the full principal and the USD 24.68 million coupon were paid in April without the need for additional borrowing.
The Minister explained that the USD 500 million payoff, together with a cumulative debt reduction of USD 616 million since the incumbent government took office, signals fiscal discipline that is beginning to reshape the Maldives’ credit profile.
According to the Minister, the ongoing debt‑service commitments, now supported by a budget allocation of USD 837 million for this year, have restored trust among international investors.
He noted that several prospective investors are already meeting with government officials, expressing a positive outlook on the Maldives and intent to make large‑scale investments.