Maldives to Issue Refinancing Green Bond

Maldives Monetary Authority (MMA) has announced plans to issue a refinancing green bond in the international market. This move aims to tackle foreign currency liquidity challenges and improve the country's debt situation.

In response to Fitch's downgrade of the Maldives' rating from 'CCC+' to 'CC,' MMA and the Ministry of Finance have expressed confidence in their ability to boost the country's official reserves and to address financial challenges. MMA has announced plans to maintain gross reserves at $600 million by the end of the year and is working with the Reserve Bank of India (RBI) on a $400 million currency swap agreement.

Furthermore, MMA will initiate a mop-up exercise to remove MVR 6.7 billion in excess liquidity and will revise policies related to monetary instruments to address FX liquidity challenges faced by banks.

Government assures that cost-cutting and revenue-boosting measures, along with adherence to the medium-term fiscal and debt strategy, will improve the country's financial outlook.