India has deferred the repayment of USD 50 million in T-bills sold by the State Bank of India (SBI) to the Maldivian government of which the payment is due this month.
The amount is part of a the USD 200 million acquired from SBI in 2019, during former President Ibrahim Mohamed Solih’s administration. While USD 150 million was issued as T-bills, the remaining USD 50 million was a grant.
In January 2023, the Maldivian government repaid USD 50 million for the bond. Although the second installment of USD 50 million was due in May 2023, the Indian government deferred the payment for a one year period on the request of the Maldivian government.
While the one year postponement comes to an end this month, Foreign Minister Dr Ibrahim Khaleel has announced that the Indian government has once again deferred the payment, with no additional interest incurred for the extension. However, he did not specify the length of postponement.
SBI had earlier deferred the third payment of $50 million owed by the government in September last year to September this year.
India has been giving several concessions to the Maldives as it struggles to repay loans owed to India due financial difficulties faced by the government. India has also arranged a swap facility of USD 400 million and Rs 30 billion to stabilise the country's reserves.