Nasheed Warns Maldives Risks Debt Trap as High Interest Loans Pay Off Old Debt

Former President Mohamed Nasheed warned the Maldives risks a debt trap if the government borrows at high interest solely to repay old loans. He posted on X that such a cycle signals deep structural trouble. Reports indicate the government seeks a high-interest loan over 14% from Cargill Financial Services International to repay a USD 500 million sukuk maturing on April 8. Former defence minister Mariya Ahmed Didi called for urgent cross-party cooperation, noting resignations at the Maldives Pension Administration Office over an MVR 2.4 billion bond. Former MDP chair Fayyaz Ismail said salaries rose by over MVR 1 billion in 2025. Former President Yameen claimed interest rates as high as 17%. Moody's and Fitch have downgraded Maldives to high-risk.

Former President Mohamed Nasheed warned the Maldives risks a debt trap if the government borrows at high interest solely to repay old loans. He posted on X that such a cycle signals deep structural trouble. Reports indicate the government seeks a high-interest loan over 14% from Cargill Financial Services International to repay a USD 500 million sukuk maturing on April 8. Former defence minister Mariya Ahmed Didi called for urgent cross-party cooperation, noting resignations at the Maldives Pension Administration Office over an MVR 2.4 billion bond. Former MDP chair Fayyaz Ismail said salaries rose by over MVR 1 billion in 2025. Former President Yameen claimed interest rates as high as 17%. Moody's and Fitch have downgraded Maldives to high-risk.

Former President Mohamed Nasheed warned the Maldives risks a debt trap if the government borrows at high interest solely to repay old loans. He posted on X that such a cycle signals deep structural trouble. Reports indicate the government seeks a high-interest loan over 14% from Cargill Financial Services International to repay a USD 500 million sukuk maturing on April 8. Former defence minister Mariya Ahmed Didi called for urgent cross-party cooperation, noting resignations at the Maldives Pension Administration Office over an MVR 2.4 billion bond. Former MDP chair Fayyaz Ismail said salaries rose by over MVR 1 billion in 2025. Former President Yameen claimed interest rates as high as 17%. Moody's and Fitch have downgraded Maldives to high-risk.

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