Zameer: Revenue evaluation and repayment planning will precede Sukuk refinancing

Finance Minister Moosa Zameer states the USD 500 million Sukuk due in April will be refinanced after careful assessment of state revenue and repayment plans.

In his presidential address on Thursday, President Dr. Mohamed Muizzy announced that the Sukuk due in April will be refinanced after repaying half, adding that the interest rate will not exceed nine percent.

Speaking regarding the Sukuk on state media, PSM’s ‘Raajje Miadhu’ program on Thursday night, Minister Zameer assured that the Sukuk will be refinanced after ensuring ways to repay the debt.

He added that the state’s Sovereign Development Fund (SDF) has the capacity to service the debt – something which he attributed to the efforts undertaken by the President since assuming office.

According to Minister Zameer, SDF currently holds more than USD 275 million, with usable reserves nearing USD 600 million.

Hence, he stressed that Maldives is capable of repaying the Sukuk even if it were due immediately.

Highlighting the need to secure approximately USD 150 million to refinance the Sukuk, the Minister said the Maldives’ improved fiscal position now allows it to borrow at significantly lower interest rates.

With USD 1.1 billion in debt payments due this year, international financial institutions have been calling for fiscal reforms and spending cuts since 2021. Even though these reforms are not fully in place, the government insists it will repay all debts on time.

Meanwhile, financial experts warn that obtaining financing at favorable rates will be difficult after major credit rating agencies Fitch and Moody’s downgraded the Maldives to junk status, signaling reduced investment appeal.