According to Minister of Finance and Public Enterprises Hassan Zareer, the Maldivian government allocated USD 648.51 million for debt repayment in the first eight months of this year.

The figure represents a significant financial milestone, surpassing the total expenditures on debt servicing from 2015 to 2023, the minister stated during a presentation at the ruling People’s National Congress Congress.

Minister Zareer detailed the nation's fiscal situation and the government's accomplishments over the last two and a half years.

He stated that national debt responsibilities stayed comparatively low from 2015 to 2020 until the economic effects of the COVID-19 pandemic heightened repayment challenges.

The original repayment obligation after the pandemic was around USD 25.94 million.

By the conclusion of 2024, the government’s overall debt liabilities had increased to USD 3.3 billion, rendering the previous and current years the most difficult times for loan repayments in the nation’s history.

The minister stated that the extent of debt servicing has impacted the government’s foreign-currency situation, as a significant portion of the foreign currency received by the state is allocated for loan rep repayments.

Imports of fuel have placed additional strain on the nation's finances.

As per data provided by the minister, the cost of fuel imports was USD 831 million in 2022 and stayed above USD 700 million in each of the next three years.

Fuel costs have decreased this year, yet the total now sits at USD 683 million.

The reduction provides some reprieve to state reserves as the government persists in handling substantial debt repayments and other significant financial commitments. The data underscore the ongoing strain on public finances from debt servicing and critical imports, while also reflecting a recent drop in fuel-related spending.