India covered $43 million in interest on Maldives’ $150 million SBI t-bills
The Maldives completed repayment of the facility on Thursday after settling the final USD 50 million instalment.
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The Indian government covered USD 43 million in interest costs on a USD 150 million Treasury bill facility subscribed by the State Bank of India (SBI), as the Maldives completed repayment of the principal amount on Thursday.
The USD 150 million facility was provided as budget support during the administration of former President Ibrahim Mohamed Solih, with SBI subscribing to Maldivian government Treasury bills.
The Maldives completed repayment of the facility on Thursday after settling the final USD 50 million instalment.
The USD 150 million principal was repaid in three instalments. The first USD 50 million was repaid in January 2024, followed by a second USD 50 million in May this year. The remaining USD 50 million, which matured on Thursday, was also settled.
While the Maldivian government repaid the principal, the Indian government covered USD 43 million in interest costs accumulated on the Treasury bills over the past five years.
India had also provided several extensions to the repayment periods of the Treasury bills.
Repayment of USD 100 million of the facility was extended six times, while repayment of the remaining USD 50 million was extended four times up to this year.
The Treasury bill subscription formed part of an economic assistance package announced by India for the Maldives. The package included SBI’s subscription to USD 150 million in Maldivian Treasury bills as budget support.
India has also provided financial assistance to the Maldives through currency swap arrangements. This includes an INR 30 billion currency swap facility aimed at supporting the country’s foreign exchange position.
The Maldives has also been provided quotas for the import of essential commodities from India, including food products and materials used by the construction industry.
India has continued to provide financial assistance to the Maldives in recent years, including through subscriptions to government securities.
More recently, the Indian government subscribed to USD 350 million in Maldivian Treasury bonds. The Maldives is required to repay the amount in 2029 and 2030.
