Maldives government uses 10 schools as assets to sell Sukuk bonds

Rehendhi School Students | Photo: President's Office

Male’, Maldives – Spokesperson of President’s Office, Mabrook Azeez stated that the government is using government schools in the capital Male’ city as assets to sell Sukuk bonds.

The statement from Mabrook comes after rumors rose in social media that the government mortgaged schools to sell bonds. Mabrook stated that the rumor is not true at all and stated that the government is only using the schools as assets to sell bonds, noting that mortgaging and holding as assets are two different things.

The schools held as assets to sell bonds for the government are Iskandhar School, Thaajuddin School, Giyaasuddin School, Imaadhuddin School, Kalaafaanu School, Rehendhi School, buildings used for EPS and MES along with CHS as well.

While Finance Minister of Maldives, Ibrahim Ameer stated that they will be selling additional bonds by the end of this year under the program to sell USD 1 billion worth of bonds, he added that the government will also receive an opportunity to issue bonds next year as well.

While the government earned a total of USD 300 million after selling bonds this April, using Dharumavantha Hospital as an asset, they are required to pay back the amount with interests, approximately USD 387 million after five years. Out of this, USD 191 million was spent on paying back the state’s debts.

Although Dharumavantha Hospital property was used as assets to issue bonds from the government, this is not done under the conventional guidelines. If the amount cannot be paid back, then as per the usual mortgaging guidelines, the property will not be sold to obtain money.