Maldives has successfully completed a USD 25 million payment towards its $500 million senior unsecured Sukuk, which was issued in 2021 and is set to mature in 2026.

According to the Finance Ministry, the semi-annual payment, due in April and October, was settled on time.

The Finance Ministry has reiterated the Maldives government's commitment to meeting its debt obligations, assuring investors and lenders that the country will continue to settle its outstanding debts on time.

In a statement, the Ministry emphasized that debt servicing remains a top priority for the Maldives, amid growing concerns from international investors. On May 4, Bloomberg, a leading business news outlet, reported fears of a potential default on the Maldives' USD 500 million Sukuk, which was issued in 2021. According to the report, the Sukuk was trading at 80 cents on the dollar in August, but has since dropped to 66 cents, making it one of the lowest-traded Sukuk in recent months.

Bloomberg attributed the sell-off to the credit rating downgrade by Fitch, which led to increased fears that the Maldives might become the first country to default on a Sukuk. However, the government has firmly denied these concerns, reassuring investors that it remains committed to honoring the Sukuk payments and preventing any default.

India is reportedly working on a USD 400 million currency swap facility with the Reserve Bank of India (RBI), which will help ease financial pressures and facilitate timely debt payments.

An Indian official stated this currency swap will make it easier for the Maldives to meet its debt obligations and ensure stability.

The Maldives continues to work closely with its regional partners to strengthen its financial position and maintain investor confidence.