Maldives Trapped in a Dangerous Debt Cycle, Says Former President Nasheed

Former President Mohamed Nasheed has warned that the Maldives is currently trapped in an unsustainable and dangerous debt cycle, raising serious concerns about the country’s economic and financial stability.

In a post on social media addressing the Maldives’ economic situation, Nasheed said it has become increasingly clear that the country is borrowing at extremely high interest rates that are difficult to repay and place a heavy burden on Maldivian citizens. He noted that much of the new borrowing is being used solely to service existing debt, which he described as clear evidence that the nation is stuck in a debt trap.

Nasheed stressed that the debt crisis is no longer a problem that can be resolved by the current government alone, but has now become a national issue affecting the entire country.

“This debt issue is far bigger than what the current government alone can solve,” Nasheed said, underscoring the scale and seriousness of the challenge.

As national debt continues to rise to alarming levels, Nasheed said debt restructuring and comprehensive economic reforms have become critically important. He added that financial experts are increasingly highlighting the urgent need for structural reforms to stabilise the economy.

Nasheed’s remarks reflect growing concern over the Maldives’ fiscal outlook and the risks posed by rising debt, limited fiscal space, and mounting pressure on public finances.