The Maldivian government has successfully settled a USD 500 million sovereign Sukuk that matured in April, a move that eases immediate fears of a sovereign default. The repayment, which included a USD 24.68 million coupon payment, was made using funds from the Sovereign Development Fund (SDF) and the country's foreign currency reserves.
Finance Minister Moosa Zameer had earlier stated the government’s intention to refinance the bond based on state revenue and at a lower interest rate. The successful settlement marks a significant step towards improving the nation's debt sustainability. In 2024, the Maldives declined an IMF bailout, instead opting for severe spending reductions, including a 50 percent pay cut for President Mohamed Muizzu, to navigate its fiscal challenges