The Indian government has again decided to rollover a USD 50 million Treasury Bill for an additional year upon the request of the Maldives government.
The T-Bills worth USD 200 million were bought under a 2019 agreement between the previous government and the Indian government to secure budget support for the Maldives.
India first deferred the payment for a year in May 2024 during former Foreign Minister Moosa Zameer's visit to the country. In January 2024, the Maldives government repaid USD 50 from the USD 200 million loan. The outstanding balance is USD 150 million.
The debt was rolled over every year during the previous government. The interest on the T-bill during this period is also paid by the Indian government.
"This timely assistance reflects the close bonds of friendship between Maldives and India and will support the government’s ongoing efforts to implement fiscal reforms for economic resilience," Foreign Minister Abdulla Khaleel posted on X.
Last week, the World Bank said that the Maldives' debt outstanding this year will reach USD 1 billion (MVR 15.4 billion) with the Reserve Bank of India (RBI)'s currency swap facility.
The USD 400 million currency swap facility from the RBI was taken out with the assistance of the Indian government last year due to declining foreign exchange reserves. Of the funds drawn from the facility, USD 120 million was invested in local banks, while the rest was invested in foreign banks.
