Statistics have shown that the Maldives’ total debt was at MVR 86.5 billion at the end of 2020.
According to debt statistics publicized by the Finance Ministry, domestic and external debts, and loans for which guarantees were issued until end of 2020 amounts to MVR 86.5 million. Out of this, MVR 44 billion accounts for external debt and MVR 42 billion is owned in domestic debts. The total amount owed is 149 percent of the country’s GDP.
The Maldives’ domestic debt stood at MVR 34.9 billion and external debt at MVR 34 billion by the end of the first quarter of 2020. Domestic debt increased to MVR 36 billion during the second quarter while external debt rose to MVR 37 billion during the same period. During the third quarter, external debt increased to 38 billion and domestic debt reached MVR 41 billion. Guaranteed debt stood at MVR 19.9 billion at the end of the fourth quarter.
The Maldives’ debt increased significantly over the past year due to the unforeseen expenses incurred as a result of the COVID-19 pandemic. The government took out several loans from financial institutions and foreign governments to make up for the economic losses due to the global pandemic. The highest amount in debt is owed to neighboring India.