World Bank predicts impact on private sector due to 2026 debt challenge

The World Bank has predicted that the Maldives' substantial debt by 2026 will impact the private sector.

According to the World Bank's report on the financial situation in the South Asian region, Maldives will face challenges in raising the significant amount of debt due in 2026. The World Bank estimates that one of the reasons for the impact on the private sector is the country's low foreign currency reserves.

The 2026 debt includes a $500 million (MVR 7.7 billion) sukuk taken by the government in 2021, as well as a $100 million loan from the Abu Dhabi Fund for Development (ADFD), repayable in 2026, obtained by the previous government.