The Indian government has decided to roll over a 30 billion rupee currency swap agreement due for repayment by the Maldives this October.
Reliable sources informed Adhadhu that the Maldivian government requested an extension for the currency swap, which was set to mature on October 22. Finance Minister Hassan Zareer confirmed India’s decision to grant the rollover during an interview with Reuters.
The 30 billion rupee swap was drawn in April, following the Maldivian government's repayment of a previous $400 million currency swap facility that had been initiated in October 2024.
Although the currency swap was issued in Indian Rupees, the Maldivian government converted the funds into US Dollars.
The decision to roll over this month’s repayment comes after the Maldivian government paid $50 million to India in September. That payment was made after previous requests to defer the debt were unsuccessful.
MDP Chairperson and former President Mohamed Nasheed had previously warned that settling such debts could deplete the nation’s reserves, leaving the country unable to fund essential needs. President Mohamed Muizzu later acknowledged that the reserves were currently "at a low level."
"Despite the low reserves, God willing, the situation will improve through these efforts. Therefore, the coming days will see us strengthening our reserves. Within the next six months, the results of our ongoing work will show monthly improvements, leading to a significant recovery," Muizzu said on September 25.
