Brief by Shorts91 Newsdesk / 04:40pm on 05 Sep 2024,Thursday India Global
Traders are rushing to offload Maldives' Islamic bonds as the risk of default grows. The dollar-denominated sukuk due in 2026 dropped below 70 cents, hitting a record low. The Bank of Maldives has capped foreign currency spending, and Fitch has issued its second downgrade since June. "Without a last-minute foreign exchange infusion from China, the GCC, or India, the non-payment of the October coupon is a plausible scenario," said Purvi Harlalka, an emerging-market strategist. The Maldives Monetary Authority is negotiating a $400 million currency swap with India, but reserves remain critically low.
