The government will request India to convert a USD 50 treasury bond purchased by the State Bank of India to a grant, Finance Minister Dr. Mohamed Shafeeq said on Thursday.
At a press conference by the Finance Ministry, Shafeeq said India had rolled over USD 50 million owed in May and that the government was working to convert USD 50 million owed in September to a grant.
The government had built up the capacity to repay the USD 50 million in May, but the payment rollover was proof of restored ties between the countries, Shafeeq said.
The conversion of the USD 50 million to a grant would be a significant relief for the Maldivian treasury, Shafeeq noted, expressing hope that it could done with the two countries working together.
"In January, we settled USD 50 million of the bond in full. One of the main considerations in settling that USD 50 million was to show that we have the capacity to repay our debt. We want to show that," Shafeeq said.
SBI subscribed to the treasury bond under an agreement made between the Indian government and the previous government. With USD 50 million at a time, SBI purchased a total of USD 200 million worth of treasury bonds.
Of the bonds, the current government paid USD 50 million in January. But with USD 150 million outstanding, the government has been trying to roll over the payments.
