Government defends plans to sell US$200m worth of sovereign bonds
In the face of criticism from the opposition, the finance ministry said the Maldives’ first ever international sovereign bond issuance would help raise finances for infrastructure projects and develop the country’s financial system and capital market.
31 Dec 2016, 9:00 AM
The finance ministry has defended plans to sell US$200 million worth of sovereign bonds in the international financial market next year, dismissing criticism from the opposition over growing debt.
Former President Maumoon Abdul Gayoom, who withdrew his support for the government amid a bitter leadership dispute that split the ruling party, called the move “bad economics”.
“It will be a severe burden on the future well-being of Maldives,” he tweeted after the finance ministry invited proposals earlier this month from banks and investment houses for the role of lead managers or bookrunners to issue the US dollar-denominated bonds.
The finance ministry said in a statement Wednesday that the Maldives’ first ever international sovereign bond issuance would help raise finances for infrastructure projects.
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