President Muizzu attempts to mislead public after acquiring new debt

President Dr. Mohamed Muizzu has attempted to mislead the public by concealing the acquisition of new debt following the repayment of an existing loan to India.

After the Indian government declined to extend the repayment deadline for the $400 million currency swap facility—drawn in October 2024 via the US Dollar/Euro swap window under the "Framework on Currency Swap Arrangement for SAARC Countries 2024-2027" between the Maldives Monetary Authority (MMA) and the Reserve Bank of India (RBI)—the facility has been settled in full, and a new swap of $318 million has been secured.

The Ministry of Foreign Affairs previously confirmed that the Indian government has facilitated a 30 billion rupee currency swap arrangement. This facility, equivalent to approximately 4.9 billion Maldivian Rufiyaa, has already been utilized.

During a press conference held on Monday, a journalist inquired about the government's recent debt repayments. The reporter sought clarification on the methods used for these payments, the applicable interest rates, and whether any additional debt had been incurred in the process.

A total of $924 million—nearly a billion dollars—was reportedly paid within a 21-day period. This includes a $52 million sukuk payment on April 2nd and a $400 million currency swap settlement on April 23rd. Was any additional debt incurred to facilitate these payments? Furthermore, did the currency swap accrue any interest, and what was the final total amount paid? Were both of these obligations settled using the state's official reserves?

The question posed by the journalist

The President stated that he did not have the specific details regarding the interest rates at hand during that moment. He further noted that since he did not possess that information, he would instruct the President's Office Communications Department to clarify the details with the Ministry of Finance and particularly the Maldives Monetary Authority (MMA) before providing them.

The President stated that a currency swap arrangement of 30 billion Indian Rupees is currently in place. Highlighting the importance of maintaining the Maldives' gross reserves at a specific level, he noted that a request was made to utilize the 30 billion Rupee swap. Following this request, India activated the swap arrangement. Furthermore, the President confirmed that 400 million dollars has already been repaid.

We believe it is crucial to utilize the facility offered by India, given our current economic situation. Regarding the specific details mentioned earlier, such as interest rates, I will provide those to you once I have gathered the necessary information.

President Dr. Mohamed Muizzu

According to a statement from the Ministry of Foreign Affairs, a new currency swap arrangement has been extended in Indian Rupees following the repayment of a previous $400 million swap. The new facility, valued at 30 billion Indian Rupees, is equivalent to approximately $318 million.

The Ministry of Foreign Affairs stated that this 30 billion rupee swap facility will significantly bolster the government's policies aimed at maintaining the Maldives' economic stability amidst the evolving situation in the Middle East.

The Ministry of Foreign Affairs stated that the establishment of this 30 billion rupee swap facility symbolizes the robust relations between the Maldives and India. However, the Indian government did not grant any concessions regarding the Maldives' request to extend the currency swap facility, as the appeal faced hurdles due to the established frameworks and regulations governing the system.

Despite the current administration settling a $400 million debt to India, it proceeded to secure a new loan of $318 million the very next day.