The Maldives’ total debt has escalated to MVR 124 billion by the end of last year, according to the latest figures released by the Finance Ministry. This significant debt level represents 115.9 per cent of the nation’s Gross Domestic Product (GDP), indicating a substantial economic burden.
The fourth quarter debt figures from the Finance Ministry detail the composition of this debt, divided into domestic and external liabilities. Domestic debt accounts for MVR 73 billion of the total, while external debt comprises MVR 51 billion.
The progression of the Maldives’ debt throughout the year shows a consistent increase. At the end of the first quarter, the total debt was reported at MVR 113.6 billion. This figure rose to MVR 118.6 billion by the end of the second quarter and further increased to MVR 121 billion by the close of the third quarter. The year concluded with the total debt peaking at MVR 124 billion.
In comparison to the previous year’s end, where the total debt stood at MVR 108.4 billion, there is a clear upward trend in the nation’s debt levels. This escalating debt trajectory highlights the challenges faced by the Maldives in managing its financial commitments amidst economic pressures.
The Finance Ministry’s report brings to light the critical need for effective strategies in debt management and economic reform. As the Maldives grapples with its increasing debt, the focus on sustainable financial planning and economic stability becomes more paramount.