Maldives Sovereign Development Fund Receives USD 30 Million Boost

Minister of Economic Development and Trade, Mohamed Saeed, has announced that USD 30 million has been deposited into the Maldives’ Sovereign Development Fund (SDF) during the first three months of President Dr. Mohamed Muizzu’s term.

Speaking at a public gathering in Haa Alif Kelaa, Minister Saeed claimed that the SDF held only USD 2 million and MVR 2.4 million when President Muizzu assumed office. He further alleged that the previous administration, led by former President Ibrahim Mohamed Solih, had exchanged USD 400 million in foreign currency from the fund and “proceeded to empty it.”

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Minister Saeed predicted that the SDF would have USD 130 million deposited by the end of the year.

The SDF was established in 2017 by former President Abdulla Yameen to facilitate the repayment of state debt. Minister Saeed served as Economic Minister during that period as well.

Despite Minister Saeed’s statements, Maldives Monetary Authority (MMA) statistics indicate that the SDF currently holds USD 7 million and MVR 106.6 million.

According to this year’s budget, the SDF received MVR 4 billion through Airport Development Fees, MVR 1.4 billion through cross-subsidy projects, and a further MVR 2 billion from other sources by the end of September 2023. Of the total funds in the SDF, MVR 5.7 billion is invested in treasury bills (T-bills), with other investments accounting for MVR 1.7 billion.

The budget also specifies that MVR 3.8 billion from the SDF will be utilized for debt repayment this year. A significant portion of the SDF is expected to be allocated towards debt repayment in the years 2025 and 2026. The Maldives’ current total state debt stands at MVR 120 billion.

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