The Maldivian government spent USD 648.51 million on debt repayment during the first eight months of this year, according to Minister of Finance and Public Enterprises Hassan Zareer.

The figure marks a major fiscal milestone, exceeding the total amount spent on debt servicing between 2015 and 2023, the minister said during a presentation at the ruling People’s National Congress Congress.

Minister Zareer outlined the country’s financial position and government achievements over the past two and a half years.

He said national debt obligations remained relatively low between 2015 and 2020 before the economic impact of the COVID-19 pandemic increased repayment pressures.

The initial post-pandemic repayment requirement was approximately USD 25.94 million.

By the end of 2024, the government’s total debt obligations had risen to USD 3.3 billion, making the previous and current years the most challenging periods for loan repayments in the country’s history.

The minister said the scale of debt servicing has also affected the government’s foreign-currency position, with much of the foreign currency entering state coffers being directed toward loan repayments.

Fuel imports have added further pressure to the country’s finances.

According to figures presented by the minister, fuel import costs reached USD 831 million in 2022 and remained above USD 700 million during each of the following three years.

Fuel expenditure has declined this year, however, with the total currently standing at USD 683 million.

The decrease offers some relief to state reserves as the government continues to manage high debt repayments and other major financial obligations.The figures highlight the continued pressure on public finances from debt servicing and essential imports, while also indicating a recent reduction in fuel-related expenditure.