The Indian government has decided to rollover a USD 50 million Treasury Bill for an additional year upon the request of the Maldives government.

According to the Foreign Ministry, the one-year extension was granted to a USD 50 million Treasury Bill which matured on 19 September 2024 through the State Bank of India (SBI).

SBI bought the Treasury Bill under an agreement signed by the former government. SBI has bought a total of USD 200 million in Treasury Bills at a cost of USD 50 million for each one.

The Treasury Bills were previously rolled over annually with interest paid by the Indian government. However, the government of President Dr. Mohamed Muizzu repaid USD 50 million in January this year.

Maldives had requested the Indian government to extend the deadline for repayment of the remaining USD 150 million. India agreed to rollover USD 50 million in May and a second USD 50 million payment was due today.

The Indian High Commission in Maldives said in a statement that the payment was postponed at the request of the Maldives government.

"These subscriptions have been made at the special request of the Government of Maldives as emergency financial assistance," it read.

The Foreign Ministry issued a statement and thanked the "generous support that the Government of India has been providing to the Maldives in the form of budgetary support."

"This extension comes at a pivotal moment as the Government of Maldives is implementing a strong fiscal consolidation program to address the pressing economic challenges," the ministry said.

The government is also working to defer repayment of loans taken from other countries including China.