President Nasheed warns that obligation to repay a $50 million debt to India could jeopardize the import of essential commodities
16 ސެޕްޓެމްބަރު 2026 | ބުދަ 18:06Former President Nasheed has warned that the Maldives' usable foreign currency reserves are set to plummet following the mandatory repayment of a $50 million bond to India. This decline raises significant concerns over potential difficulties in importing essential goods and poses a serious threat to the nation's overall financial stability and international credit rating.
President Nasheed attends the inauguration ceremony of the new terminal at Velana International Airport (VIA). | President's Office
Former President Mohamed Nasheed has stated that the deadline for a USD 50 million bond repayment to the Indian government expired on Wednesday, leaving the Maldivian government with no choice but to settle the debt.
President Nasheed warned that following this payment, the Maldives' usable foreign currency reserves at the central bank (MMA) are expected to decline significantly starting Thursday.
"As a result, the government will lack sufficient foreign currency reserves to import essential food items, fuel, and medical supplies," President Nasheed stated in a post on X.
According to a reliable source informed on the matter, the government failed to settle the $50 million bond mentioned by President Nasheed by its maturity date.
Despite neighboring India being a key partner that provides multifaceted assistance to the Maldives and has previously offered concessions on debt repayment, the government’s failure to secure an adequate solution in this instance has raised questions about its ability to effectively maintain essential diplomatic relations with its closest neighbors.
At a time when the Maldives' domestic and external debt has escalated significantly alongside rising inflation, utilizing a substantial portion of usable reserves to service debt is expected to exacerbate financial instability and pose a severe risk to the nation's credit rating.
