Total state debt rose to MVR 126 billion as of the end of the first quarter (Q1) of this year, according to data released by the Ministry of Finance.
As per the ministry’s Quarterly Bulletin, while it stood at MVR 124.8 billion at the end of last year, debt increased by MVR 1.4 billion over the first three months of 2024.
The increase was mainly attributed to borrowing from the domestic market. Domestic debt was at MVR 74 billion in Q1 — the figure remained at MVR 72.8 billion at the beginning of the year. Total external debt which stood at MVR 38 billion at the beginning of the year, remained unchanged, data shows.
While direct borrowing totalled MVR 112 billion, sovereign guarantees accounted for MVR 14 billion of debt. Sovereign guarantees decreased by around MVR 170 million since the year began.
However, the amount of direct loans and bonds issued by the state has increased due to borrowing from the domestic market.
State debt as a percentage of GDP fell 6.4 percent from at the beginning of the year and is currently at 110 percent. At the end of last year, the figure stood at 116 percent of GDP.
The 2024 National Budget estimates that total debt will reach MVR 131 billion by the end of the year, which is 114 percent of the country’s GDP.