India has granted the Maldives another year’s extension on the repayment of a USD 50 million treasury bill which was due this month.
The State Bank of India (SBI) subscribed to the USD 50 million T-bill issued by the Maldivian Finance Ministry for a period of one year in March 2019. The repayment period was subsequently extended at the request of the Male’ government.
In a statement on Monday – the day the debt was due – the Indian High Commission in Maldives announced that the SBI has rolled over the T-bills again for one more year as emergency financial assistance.
According to India, the extension was granted at the request of the Maldivian government.
President Dr. Mohamed Muizzu (R) meets with Indian Prime Minister Narendra Modi (L) on June 10, 2024. (Photo/President's Office)
The debt is now due on May 11, 2026.
In the statement, the Indian High Commission described the Maldives as “India’s key maritime neighbor and an important partner under India’s ‘Neighborhood First’ policy and Vision SAGAR i.e. Security and Growth for All in the Region.”
The High Commission added that the emergency financial assistance reflects “India’s continued support to the government and people of the Maldives.”
In a post on X on Monday morning, Maldivian Foreign Minister Abdulla Khaleel expressed his sincere appreciation to his Indian counterpart, External Affairs Minister Dr. S. Jaishankar and the New Delhi government for extending the crucial financial support to Male’.
Maldives-India sign MoU on third phase of High Impact Community Development Projects (HICDP) on January 3, 2025. (Photo/Dr. S Jaishankar)
“This timely assistance reflects the close bonds of friendship between #Maldives & #India and will support the Government’s ongoing efforts to implement fiscal reforms for economic resilience,” he said.
I express my sincere gratitude to EAM @DrSJaishankar and the Government of #India for extending crucial financial support to the #Maldives through the rollover of the USD 50 million Treasury Bill.This timely assistance reflects the close bonds of friendship between #Maldives &…
— Abdulla Khaleel (@abkhaleel) May 12, 2025
During former Maldivian President Ibrahim Mohamed Solih’s administration, the SBI subscribed to three USD 50 million T-bills issued by the Male’ government.
One of the T-bills was repaid by the incumbent President Dr. Mohamed Muizzu’s administration in January 2024.
The rollover of the USD 50 million T-bill comes after Male’ and New Delhi signed a USD 400 million currency swap deal in October 2024 as the island nation grapples with mounting debt. And in April, India increased the export quotas for essential commodities to the Maldives for a year – marking the highest quotas approved under a unique bilateral mechanism set up between the two neighboring countries back in 1981.
The Maldives has around USD 500 million in debt due this year, and another USD 1 billion in debt due next year.
Relations between Maldives and India had been strained in the early days of President Muizzu’s presidency after he adopted a foreign policy that tilted away from the island nation’s traditional ally, India.
But relations were later mended, as officials from both Male’ and Delhi repeatedly expressed keenness to maintaining relations and engaged in several high-level visits.