1. Home
  2. Public Finance
  3. Debt Management
Debt Management
12 August 2021 Share Tweet

Debt Management is one of the key functions of the Ministry. Effective public debt management reduces financial vulnerabilities, contributes to macroeconomic stability, preserves debt sustainability, and protects the government's reputation among investors. The Ministry sets policies and strategies related to debt management, and closely monitors the performance of the public debt portfolio.

Medium Term Debt Management Strategy

With the enactment of the Fiscal Responsibility Act (FRA) in 2013, the Ministry is required to prepare and submit a Medium-Term Debt Management Strategy (MTDS) to the People’s Majlis (parliament) annually. The MTDS should include public debt targets; the level at which the total public debt would be maintained as a percentage of GDP; the target share of external and domestic debt in the total debt portfolio; the steps planned or currently being taken to mitigate debt related risks; and the utilization of borrowed funds. At present the government uses the World Bank MTDS toolkit to prepare the strategy.

Credit Rating

The sovereign credit rating for the Republic of Maldives is assigned by two of the three major credit rating agencies in the world - Moody’s Investors Service and Fitch Ratings. The first sovereign credit rating issued and published for the Maldives was in September of 2016, where Moody’s assigned a B2 rating for the Maldives. In May of 2017 Fitch Rating became the second rating agency to rate the Maldives, with a B+ rating. Since the initial rating, Maldives has maintained these respective ratings from Moody’s and Fitch.

Read More

Government Securities Operations

Effective 12th August 2021, the issuance and management of government securities will be carried out by the Debt Management Department of the Ministry of Finance. The Debt Management Department of the Ministry establishes and reviews procedures and systems to ensure that the issuance of government securities is undertaken efficiently and effectively, in line with the Annual Borrowing Plan.

The Debt Management Department of the Ministry will also be the registrar for all government securities issued. Recording and management of all Government debt, including Government securities are maintained in the Commonwealth Secretariat Debt Recording and Management System (CS-DRMS). The terms and conditions for the issuance of these securities and the rules governing the operation are provided in the Government Securities Operations Manual.
Read More

Debt Statistics

Regular debt statistics are generated by the Ministry that shows the total debt outstanding of the central government and breakdowns for government securities borrowing, showing the change in debt level from one period to the other.

Read More

Public Debt Bulletin

The Public Debt Bulletin provides the disbursed outstanding debt of the government including guaranteed and on-lent loans, external and domestic debt breakdowns, and summary debt statistics.

Read More