Maldives President to Visit India Amid Danger of Debt Default

Quick Summary:

Malé is hoping for a bailout from New Delhi after credit rating agencies downgraded the country’s debt over a high risk that it could default on an Islamic bond.

Despite relatively healthy economic growth and U.S.dollar receipts from nearly 2 million tourists annually, the Maldives’ foreign exchange reserves have been dwindling under pressure from external debt payments, government borrowing to plug budget deficits, and an import bill elevated by high global commodity prices.

On September 11, credit ratings agency Moody’s downgraded the Maldives based on an assessment that “default risks have risen materially,” casting doubt on the country’s ability to service substantial debt obligations due over the next two years.“While the government is working on securing some external financing, comprehensive financing to meet sizeable forthcoming maturities remains uncertain,” Moody’s warned.

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Article Details

Author / Journalist: Ahmed Naish

Category: Economy

Markets: United StatesBahrainChinaIndiaNorth KoreaSouth KoreaMaldivesSri Lanka

Topics: Foreign Currency Government Central Bank Maldives Debt India Million President Moody’s

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-09-13 @ 20:30:00 (15 hours ago)

News Timezone: GMT +8:00

News Source URL: thediplomat.com

Language: English

Article Length: 2744 words

Reading Time: 16 minutes read

Sentences: 93 lines

Sentence Length: 30 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © The Diplomat

News ID: 22502720

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