Bank of Maldives (BML) today denied allegations that it provided the $50 million required by the Maldivian government to settle Treasury bills sold to the State Bank of India (SBI).
BML issued the clarification following claims by opposition figures suggesting that the bank’s current dollar liquidity challenges are linked to providing funds to the government for this debt repayment. The government had previously refuted these claims, stating that the payment was made using funds accumulated in the Sovereign Development Fund (SDF).
In a statement addressing the allegations, BML asserted that there is no connection between the government’s debt settlement and the bank’s financial position or banking operations.
"BML has not utilized any customer deposits or any of the bank’s own resources to facilitate this payment," the statement read.
While maintaining that the government’s debt repayment is unrelated to its financial standing, BML emphasized that the institution remains financially robust. The bank further noted that it operates within defined risk appetites, regulatory standards, and a stringent framework of governance and risk management.
BML stated that the government's transaction had no impact on the bank’s financial resources. The statement further assured customers that there are no obstacles to the bank fulfilling its obligations toward them.
Following these remarks, BML urged media outlets and political figures to verify information before commenting on the bank’s financial status. The bank added that it reserves the right to take legal action against those spreading misinformation intended to defame or damage the institution.
Despite BML’s assurances regarding its financial health, the bank continues to face significant dollar liquidity constraints, causing difficulties for individuals and businesses in making foreign currency transfers and payments.
