Maldives has yet to receive 92% of projected grants as year-end looms

The Maldives has yet to receive a staggering 92 percent of the grant aid it expected to secure this year, with less than four months left until the end of the year.

The latest weekly fiscal development report released by the Finance Ministry on Sunday shows the government received just MVR 203.1 million in grants as of September 4. The figure is even lower than the MVR 372.4 million secured during the same period last year, marking a decline of MVR 170 million.

The government had projected it would receive MVR 2.6 billion in grant aid this year. But it has only managed to get 8 percent of this figure, and has yet to receive the remaining 92 percent.

The Maldives has been struggling under the weight of staggering external debt obligations, which now stands at 134 percent of the country’s GDP.

The Maldives has a USD 500 million debt repayment due in October, another USD 100 million in November, and a staggering USD 1.1 billion due in mid-2026.

Citing default risks, Moody’s has downgraded Maldives’ credit rating from CAA1 to CAA2, while Fitch downgraded the country’s credit rating from CCC+ to CC.

The World Bank has warned the situation makes it harder for the Maldives to secure foreign assistance to alleviate the crisis it faces.

The total expenditure as of September 4 stands at MVR 25.4 billion, with the total revenue and grants at MVR 26.3 billion – marking a surplus of MVR 868.7 million.

While the government insists that it has been spending within its means, it also owes billions in outstanding payments to suppliers – the exact figure of which the government has refused to disclose.

Other key figures:

• Spending on salaries, wages and pensions continue to rise with MVR 9.6 billion
• Capital expenditure down by MVR 4.5 billion as infrastructure projects remain stalled
• Decline in import duty and business profit tax earnings amid a decline in economic activity
• Only eight percent of projected grants received