Struggling with a severe economic crisis and low foreign exchange reserves, the Maldives has repaid a loan of $150 million to India by settling the final tranche of treasury bills subscribed by the State Bank of India (SBI).
MEA Confirms Final Tranche Payment
External Affairs Ministry spokesperson Randhir Jaiswal announced that the final tranche of treasury bills worth $50 million was settled by the Maldivian government on September 17. The original bills were subscribed by SBI in 2019 and extended six times.
India Bore All Interest Payments
While the Maldives paid the principal amount, the total interest over the past five years—amounting to nearly $45 million—was completely borne by the Indian government as part of its development partnership.
"India has a longstanding development partnership with the Maldives, extending currency swap facilities and crucial financial support to help stabilize their economy." — Randhir Jaiswal, MEA Spokesperson
Continued Economic Support
In addition to the loan repayment, India has extended a currency swap facility of ₹30 billion and subscribed to treasury bonds worth $350 million valid until 2029 and 2030, reinforcing bilateral ties following recent diplomatic thaws.