The value of the Maldivian sukuk securities has seen a sharp decline deteriorated.
According to Bloomberg, the downturn is largely attributed to the challenges in obtaining foreign currency and reduced confidence in the Maldives’ ability to repay loans. However, none of the sukuk have yet defaulted.
The stock market is currently trading sukuk securities at 70 cents, a double digit drop. This is the first time since 2022 that Maldives’ stock has fallen so steeply since it was listed on the stock market. The fall in the price of sukuk comes as Maldives is due to pay the full value of sukuk in 2026.
In June, Fitch Ratings downgraded the Maldives’ B-minus credit rating to CCC+ in June. Fitch downgraded Maldives’ rating to CCC+ after it has been maintained at B minus for the past three years.
According to the central bank, Maldives Monetary Authority (MMA), reserves currently stand at $395 million. Of this, $45 million stood in usable reserves. A $400 million currency swap facility is also being sought through the Central Bank of India or the Reserve Bank of India to stabilize the situation.
