The Maldives expects to reduce its debt repayment costs to MVR 4.5 billion next year, down from an estimated MVR 11.7 billion by the end of 2026, Finance Minister Hassan Zareer has said.

Presenting the proposed MVR 59.7 billion State Budget for 2027 to Parliament, the Minister said the Government was prepared to meet debt obligations inherited from previous administrations.

He said MVR 10.7 billion had already been spent on debt repayments this year, without taking on additional debt. Total repayments are projected to reach MVR 11.7 billion by year-end.

The Minister said settling these obligations would significantly reduce repayment costs next year, describing the move as an important step towards protecting future generations from the burden of debt.

He added that debt repayments had helped strengthen international financial confidence in the Maldives and improve the country’s credit rating.