Maldives gains access to $500 million India's Exim Bank credit facility

The Maldives can begin drawing funds for development projects under a USD 500 million credit line, equivalent to about MVR 7.7 billion, agreed with India through the Export-Import Bank of India.

The credit line was agreed during Indian Prime Minister Narendra Modi’s official visit to the Maldives in July 2025, which coincided with the country’s Independence Day. India’s Ministry of External Affairs records Modi’s visit as taking place from 23 to 26 July 2025. 

During the visit, the two countries also agreed on measures to ease repayment terms for existing Indian lines of credit extended to the Maldives.

Citing the Reserve Bank of India, Reuters reported details of the terms governing the new USD 500 million facility.

Under the arrangement, funds will be released through individual agreements with a minimum value of INR 5 billion, equivalent to about USD 52.2 million or MVR 806.9 million.

Projects financed through the facility will be required to source at least 75 per cent of their goods, services and works from Indian companies. The remaining 25 per cent may be procured from companies in countries other than India.

Funds from the credit facility cannot be used to pay export agency commissions.

The financing will be used for development projects in the Maldives.

India has previously financed infrastructure projects in the Maldives through lines of credit administered by Exim Bank of India. These have included projects in areas such as airports, water and sewerage, reclamation, shore protection and connectivity. 

The latest facility comes as the Maldives recently completed repayment of a separate USD 150 million financing arrangement obtained from the State Bank of India as budget support during the previous administration. The final USD 50 million payment under that facility was made last week.