Maldives settles worth around $500M despite impact of Mideast war
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MALÉ: The Maldives has successfully settled its first Islamic bond (sukuk) worth approximately $500 million, a milestone achieved despite the economic challenges posed by ongoing Middle East tensions.
On Thursday, the Ministry of Finance and Planning announced the repayment of the $500 million principal along with a $24.68 million coupon. This sharia-compliant bond, originally issued in 2021, reached maturity this month, and its settlement has allowed the archipelago to effectively reduce its overall debt stock.
The government noted that the country had faced a deteriorating fiscal position following the COVID-19 pandemic and the 2022 Russia-Ukraine war. To manage these external shocks, the Maldives implemented revenue-enhancing measures in 2024.
While the country initially projected a 5.3% GDP growth for 2026, officials cautioned that regional spillovers affecting global energy and commodity markets may weigh on medium-term growth. Despite these pressures, authorities remain confident in maintaining fuel supplies and uninterrupted public services.
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