Final $50 million India payment not from BML deposits, funded from SDF: Ministry

The Ministry of Finance and Public Enterprises has said the USD 50 million paid to settle the final portion of a USD 150 million Treasury bill facility subscribed by the State Bank of India (SBI) was funded through the Sovereign Development Fund (SDF), rejecting claims that dollars deposited by the public at Bank of Maldives (BML) were used for the payment.

The government paid the remaining USD 50 million on Thursday, completing repayment of the USD 150 million facility provided as budget support during former President Ibrahim Mohamed Solih’s administration.

Repayment of the facility had been extended by India on several occasions.

Of the USD 150 million principal, the first USD 50 million was repaid in 2024, while a second USD 50 million was settled in May this year. The final USD 50 million was paid on Thursday.

Following the payment, claims circulated on social media that the government had used dollars deposited by the public at BML to settle the obligation.

Responding to the claims on Friday night, the Finance Ministry said there was no basis to suggestions that public deposits held by BML had been used for the repayment.

The ministry said the government had prepared for the payment in advance and used funds accumulated in the SDF.

“The T-bill was repaid using funds deposited into the Sovereign Development Fund after preparations were made well in advance for the payment,” the ministry said.

The ministry also noted that President Mohamed Muizzu had announced at a press conference at the President’s Office on 11 May that the USD 50 million T-bill maturing on 17 September 2026 would be settled on the scheduled date.

The SDF is used by the government to prepare for sovereign debt repayments and other debt-related obligations.

The Finance Ministry has said the government makes regular deposits into the fund and makes financial arrangements ahead of debt maturity dates.

The USD 150 million facility was raised in 2019 through Treasury bills subscribed by SBI as budget support.

While the Maldivian government has now repaid the full principal amount, the Indian government covered the interest costs associated with the facility.

The facility was also extended on several occasions, allowing the Maldives additional time to repay the principal.

With Thursday’s USD 50 million payment, the government has fully settled the USD 150 million principal owed under the SBI Treasury bill facility.