State debt constitutes 70 percent of Maldives' GDP: ministry

Ministry of Finance has revealed that the country’s national debt constitutes 70 percent of Maldives’ Gross Domestic Product (GDP).

While the state debt currently reaches MVR 49 billion, the figure stands at MVR 62.7 billion including loan guarantees.

The ministry’s statistics revealed that the government is required to pay off MVR 2.8 billion in loans this year, out of which it has paid off 20 percent.

In order to maintain sustainable development, the country is required to lower the percent of GDP allocated for state debt, which it has exceeded. While 60 percent is allocated as the optimum amount by international standards for developing countries, Maldives debt levels have notably exceeded the limit over the year.

President Ibrahim Mohamed Solih had allocated a state budget of MVR 30.2 billion for 2019. Maldives was estimated to earn MVR 23.2 billion as income.

In December, Minister Ibrahim Ameer revealed that the Maldives national debt reached USD 3.7 billion out of which internal debt is USD 1.9 billion and external debt reached USD 1.8 billion.

In 2018, the government paid MVR 2.1 billion for loans.