India delays USD 50 million T-bill repayment deadline for Maldives
The government previously stated that it has the financial capability, and that the Maldivian government will continue to pay its dues regularly
President Dr. Mohamed Muizzu (L) and Indian PM Narendra Modi (R) during a joint press on 7 October 2024 in New Delhi
The government of Maldives has once again been granted an extension for the repayment of USD 50 million owed to the State Bank of India (SBI) Treasury Bills issued as budgetary support to the Maldives..
This pertains to the USD 200 million T-bills sold through India as budget support by the former administration. The agreement between the Maldivian government and the Indian government was formulated in 2019.
Of the USD 200 million, USD 50 million was set as a grant. Therefore, the Maldivian government is required to repay USD 150 million.
Of this amount, USD 50 million was paid in January 2024. Of the remaining USD 100 million, the repayment of USD 50 million was first extended in May 2024. Thus, this is the second time since the current administration came to power that India has extended the repayment of USD 50 million.
In a statement released by the Indian High Commission regarding the matter, it was stated that at the request of the Maldivian government, the repayment of USD 50 million owed to SBI for the T-bills sold has been extended by a year.
In addition to this, it was mentioned that the decision was made to provide financial assistance to the Maldives following discussions between the two countries.
Following the extension of the repayment, Minister of Foreign Affairs Dr. Abdulla Khaleel took to social media platform ‘X’, expressing gratitude to India's Minister of External Affairs Dr. Subrahmanyam Jaishankar and the government of India.
Minister Khaleel stated that the assistance from India demonstrates the close relationship and friendship between the neighboring countries. He also mentioned that this could be helpful in the Maldivian government's ongoing efforts to improve and advance the country's economy.
While India has extended the repayment of USD 50 million at the request of the Maldivian government, the government has so far maintained that there are no difficulties in repaying debts owed to various countries.
In this regard, the government previously stated that it has the financial capability, and that the Maldivian government will continue to pay its dues regularly.
