The Ministry of Finance and Planning has confirmed the repayment of a USD 100 million loan taken from Cargill Financial Services International, a United States-based financial agency, during the previous Maldivian Democratic Party (MDP) government.
The loan, acquired in 2022 for budget support rather than a major development project, carried an interest rate of 7.15 percent and required repayment over three years. In addition to the principal amount, the government paid an extra USD 26 million in interest.
A Finance Ministry official stated that all loans are being repaid in accordance with their respective agreements. The Ministry further indicated that the Maldives has faced no issues in meeting its debt obligations.
Beyond the Cargill Financial Services International loan, the previous administration had taken on several other debts for development projects. However, many of these projects remain incomplete, with some currently at a standstill. The Finance Ministry also revealed that substantial sums are owed to local companies that had undertaken various projects.
The Ministry said the government is now actively working to manage both foreign debt and outstanding payments owed to local firms.
