New Delhi [India], September 18 (ANI): The Ministry of External Affairs (MEA) on Friday outlined the scale of India’s development and financial support to the Maldives, revealing that the Indian government absorbed approximately USD 45 million in interest payments over five years to ease financial pressure on Malé as the island nation fully settled its USD 150 million Treasury bill facility.
Speaking at a bi-weekly media briefing, MEA Spokesperson Randhir Jaiswal said that while Maldivian authorities paid the principal amount, India bore the entire USD 45 million interest burden over the five-year tenure.
“It may also be noted that while the principal amount of the Treasury bills was paid by the Government of Maldives, the interest payment of all the US dollars 150 million Treasury bills over the past five years was borne by the Government of India. The total amount paid by India in interest settlement was close to US dollars 45 million,” Jaiswal noted.
The Ministry of External Affairs said the prolonged backstopping and periodic rollover of T-bills forms a cornerstone of India’s Neighbourhood First and development partnership policies.
Official confirmation was provided for the final USD 50 million tranche payment on the USD 150 million State Bank of India (SBI)-subscribed facility. Subscribed in 2019, the facility had been extended six times to assist Maldivian finances.
“The final tranche of US dollars 50 million Treasury bills, out of a total of US dollars 150 million subscribed by the State Bank of India with the Government of Maldives, has been successfully settled on 17th September 2024,” Jaiswal said, adding that the bills had been subscribed since 2019 and extended six times.
India continues to support the Maldivian financial system through an INR 30 billion currency swap facility, alongside SBI’s USD 350 million subscription in Treasury bonds maturing between 2029 and 2030.
“India has also extended, as you know, an INR 30 billion currency swap facility to the Maldives to support the Maldivian financial system. In addition, the State Bank of India has also subscribed to US dollars 350 million worth of Treasury bonds which are valid till 2029 and 2030,” said Jaiswal.
Reaffirming New Delhi’s commitment to maintaining essential supplies and development projects, the spokesperson concluded:
“Now, apart from this financial cooperation, we also have several other engagements, development cooperation partnerships, including, you know, several supplies that we continue to do.”
Earlier on Thursday, the Maldivian Finance Ministry dismissed concerns regarding foreign exchange constraints, citing official reserves of roughly USD 664 million as of August 2026. Authorities confirmed that debt servicing would not disrupt the importation of essential supplies such as fuel, food, and pharmaceuticals.
“The current administration has continued to honour the debt obligations arising from this budget support financing facility, secured by the previous administration, on their respective due dates,” the Maldivian Finance Ministry stated. “Accordingly, the first USD 50 million was repaid in January 2024, followed by a further USD 50 million on 11 May 2026. With today’s repayment of the remaining USD 50 million, which was due to mature on 17 September 2026, the Government has now fully repaid the entire USD 150 million facility obtained in 2019.”
Addressing concerns regarding the impact of debt servicing on local supply chains, the ministry dismissed claims that foreign exchange reserves would be constrained. According to statistics from the Maldives Monetary Authority (MMA), official reserves stood at approximately USD 664 million at the end of August 2026.
“The Government has also put in place the necessary arrangements to ensure the continued availability of foreign currency for the import of essential goods, including fuel, food items and medical supplies,” the statement read.
“Safeguarding the uninterrupted supply of these essential goods and services remains a key priority of the Government. In this context, claims that the repayment of debt could constrain the importation of essential goods are unfounded.”
Highlighting its long-term strategy, the ministry emphasised that preparing for debt obligations well in advance—including accumulating funds in the Sovereign Development Fund—remains central to its fiscal policy.
“The Government’s objective is to sustain the economic development of the Maldives, strengthen the country’s foreign exchange reserves, and safeguard the continued provision of essential goods and services to the public,” the statement added.
The ministry further noted that ongoing discussions with international financial institutions, bilateral partners, and supporting organisations are progressing favourably to solidify the country’s foreign currency reserve position moving forward. (ANI)
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