Former President Mohamed Nasheed has called for a unified, cross-party approach in negotiating with India over the deferment of a USD 400 million debt repayment due this month, stating that such collaboration would significantly improve the chances of a favourable outcome.

In a post shared on his official X account, Nasheed highlighted that the repayment to India is scheduled for April.

While the deadline has already been extended twice, he noted that reports in Indian media indicate a further extension may not be possible under the country’s financial regulations.

Addressing the broader financial situation, Nasheed pointed out that the government recently fulfilled a $550 million Sukuk bond repayment.

However, he expressed concern that the Maldives’ dollar reserves are currently under strain.

He warned that a potential default could have far-reaching consequences, affecting the financial system, government operations, and private sector stability.

Nasheed further stated that one of the central aims of the “Big Change” reform proposals put forward jointly with former MDP Chairperson Fayyaz Ismail is to promote inclusive dialogue on managing the country’s debt.

Emphasising the importance of political consensus, Nasheed said negotiations with the Indian government would be more effective if conducted with the backing of all major political stakeholders.

He concluded by urging the government to engage in discussions promptly to address the issue.