Maldives' State Debt Reaches MVR 126 Billion in Q1

The total outstanding PPG debt now stands at MVR 126.2 billion (USD 8.19 billion), equating to 110.1 percent of the nation's Gross Domestic Product (GDP). This marks a MVR 1.4 billion (USD 90.8 million) increase from the MVR 124.8 billion (USD 8.1 billion) recorded at the end of 2023.

The rise in debt is primarily due to an increase in domestic debt, which climbed from MVR 72.8 billion (USD 4.72 billion) to MVR 74 billion (USD 4.8 billion) in the first quarter. Conversely, external debt remained steady at MVR 38 billion (USD 2.47 billion).

Of the total debt, the budgetary central government (BCG) debt accounts for MVR 112 billion (USD 7.28 billion), while sovereign guaranteed debt stands at MVR 14 billion (USD 908.7 million). The sovereign guaranteed debt saw a reduction of around MVR 170 million (USD 11.02 million) during this period, while domestic loans and bonds increased.

Despite the overall debt increase, debt as a percentage of GDP fell by 6.4 percent, now at 110 percent compared to 116 percent at the start of the year.

Projections indicate that the Maldives' debt will continue to rise, potentially reaching MVR 131 billion (USD 8.50 billion) by the end of 2024, which would be about 114 percent of GDP.