President Muizzu Settles USD 428 Million in SOE Debts, Pledges Financial Stability

President Dr. Mohamed Muizzu has announced that the Maldivian government has paid USD 428 million to settle outstanding debts owed to state-owned enterprises (SOEs). The payments address critical financial challenges faced by SOEs, many of which struggled with cash flow and risked bankruptcy due to outstanding payments from government-contracted projects.

Upon assuming office, the Muizzu administration inherited several unfunded projects, leading SOEs to question their financial viability. With the majority of SOEs grappling to stay afloat—excluding a few major corporations—the government has committed to stabilizing these enterprises by settling longstanding debts in order of priority, with older obligations being addressed first.

President Muizzu emphasized that debt repayments are being made transparently from government revenue, and he confirmed that all outstanding amounts below USD 32 million have now been cleared. In addition to addressing current debts, the administration is working to establish a fair system to ensure that future government obligations to contractors and vendors are met without delay.

As part of a broader financial strategy, the government has introduced measures to compensate vendors, including issuing treasury bonds, leasing land to interested parties, and lowering government-related production costs through tax relief. These initiatives aim to maintain SOE financial health while promoting long-term stability.

President Muizzu’s administration remains committed to fostering a robust, transparent system that supports state enterprises and reinforces the Maldives’ economic resilience.