Government debt exceeds MVR 160 billion; dollar rate projected to reach 25 by October: Zariyand

Financial expert Ismail Zariyand has stated that the government's total debt has now surpassed 160 billion Rufiyaa.

Speaking on RaajjeTV’s 'TV Talk' program, Zariyand stated that the national debt stood at MVR 124 billion when the current administration took office. However, he noted that between November 17, 2023, and June of this year, the government has added MVR 37 billion to this figure.

He further noted that the national debt is projected to reach between MVR 167 billion and MVR 170 billion by the end of this year. He highlighted that both the World Bank and the International Monetary Fund (IMF) have warned that the Maldives' debt-to-GDP ratio is likely to climb to 140 percent, while the fiscal deficit could rise to 13 percent.

The current administration took office with a debt of approximately 124 billion MVR, which has now surged to 160 billion MVR. Between November 17, 2023, and June of this year, an additional 37 billion MVR has been added through securities and other forms of borrowing. By the end of this year, the total debt is projected to reach between 167 billion and 170 billion MVR. These figures are not merely my own; both the World Bank and the IMF have issued similar warnings. They have indicated that the national debt is likely to rise to 140 percent of GDP, with the budget deficit expected to reach 13 percent.

Ismail Zariyand

Zariyand stated that the government is projected to receive $1.3 billion annually by June of this year. This figure represents a twofold increase compared to previous administrations. He further noted that the current dollar shortage facing the government is a direct result of the misappropriation of these funds.

Zariyand stated that President Dr. Mohamed Muizzu should have been well aware of the extent of the outstanding debts left by previous administrations upon assuming office. However, he noted that it has now become evident that the current government lacks a clear plan to manage these financial obligations.

He revealed that the state generated 22 billion rufiyaa in revenue during the first six months of the current year, 2026. However, Zariyand noted that the government has already utilized 11 billion rufiyaa of this total for debt servicing.

Zariyand further noted that project implementation has failed to reach even close to the expected 30 percent mark for the first six months, asserting that the government has made no adequate preparations for these initiatives.

Consequently, Zariyand has projected that the dollar exchange rate will climb to 25 Rufiyaa by October of this year. He further noted that the value of the dollar is unlikely to decrease in the foreseeable future.