The Maldives has repaid a loan of $150 million from India by settling the final tranche of treasury bills subscribed by the State Bank of India even as the Indian Ocean archipelago grapples with pressing economic issues.
The final tranche of treasury bills worth $50 million, out of a total of $150 million subscribed by the State Bank of India (SBI), was settled by the Maldives government on September 17, external affairs ministry spokesperson Randhir Jaiswal told a regular media briefing on Friday. the interest payment on the treasury bills worth $150 million over the past five years was borne by the Indian government While the principal amount of the treasury bills was paid by the Maldives government. Noting that India has a longstanding development partnership with the Maldives, Jaiswal said New Delhi also extended a currency swap facility of ₹ 30 billion to the Maldives to support the country’s financial system. The repayment of the Indian loan will result in the foreign exchange reserves of the Maldives dipping below the $600-million. The reserves of the country stood at $643.8 million at the end of August, according to the Maldivian Monetary Authority (MMA). However, ties improved after Muizzu was among regional leaders invited to Prime Minister Narendra Modi’s inauguration in 2024.
“The total amount paid by India in interest settlement was close to $45 million,” Jaiswal said. “In addition, the SBI has also subscribed to treasury bonds worth $350 million, which are valid till 2029 and 2030,” Jaiswal said. Apart from financial cooperation, India supplies essential commodities to the Maldives as part of a development cooperation partnership, he said. Relations between India and the Maldives nose-dived some years ago when President Mohamed Muizzu came to power on an “India Out” campaign and sought to move his country closer to China.
