Former President Mohamed Nasheed has expressed concern over the dangerous state of the Maldives’ financial situation, stating that the country is now firmly stuck in a debt “trap.”

In a message shared today on social media platform ‘X’, Nasheed emphasized that the state debt issue is not something the current government alone can resolve. He described it as a major national problem involving the entire nation. Specifically, he pointed out that borrowing at interest rates so high that Maldivians cannot afford to repay them, and using that money solely to pay off previously acquired debts, is clear evidence that the country is trapped in a debt cycle.

Regarding the Maldives’ economic situation, a major challenge is the $500 million sukuk sold to international financial markets in 2018 and 2019, which must be repaid this year. In response, the government has been consulting and working with various parties to find easier ways to repay foreign debts and improve the financial situation.