Maldivian Government has settled all treasury bond debts owed to India, which were sold during former president Mohamed Nasheed’s presidency.
Minister of Finance Abdulla Jihad told Sun today that out of a total of $100 million (MVR 1.5 billion) owed to the State Bank of India, the last remaining $50 million was settled last Monday. Jihad said that upon repayment of the $50 million, Maldives government now has no outstanding treasury bond payments to India.
The first $50 million of treasury bonds sold to the State Bank of India was settled by the government last December.
Finance Minister has previously stated that the $50 million was repaid from the state reserve and that the negative impact of the settlement will be felt in the future.
“The problems that will arise from a decreased reserve will arise. IMF has also noted this. India said that there is no possibility of a further rollover,” Jihad had said earlier.
While the treasury bond debts to State Bank of India has been repaid, Indian High Commission officials have stated that the $100 million granted to Nasheed's government as stand-by credit is still outstanding, and that out of another $100 million agreed to be granted by the Indian Government in 2011, $30 million dollars were conceded in the same year and another $20 million in February of 2012.
High Commission also stated that under an agreement made in January 2012, India sanctioned $40 million for the housing projects in Maldives and this amount, which was also granted as a financial loan, has been conceded.