Maldives repays India’s loan of USD 150 million
New Delhi, Sept 19: Maldives has repaid a USD 150 million loan to India after settling the final USD 50 million tranche of treasury bills subscribed by the State Bank of India (SBI) in 2019. The final payment was completed on September 17.
External Affairs Ministry spokesperson Randhir Jaiswal confirmed the repayment during his regular media briefing on Friday.
He said the final tranche of USD 50 million, part of the total USD 150 million subscribed by SBI with the Maldivian government, had been successfully settled.
SBI had originally subscribed to the treasury bills in 2019, after which the arrangement was extended six times. Each extension was for one year, with the Maldivian government eventually settling the principal amount of the treasury bills.
While the Maldives paid the principal, the Indian government covered the interest payments on the USD 150 million treasury bills during the past five years. Jaiswal said the total interest settlement made by India was close to USD 45 million.
India has also extended a Rs 30 billion currency swap facility to the Maldives as part of its financial support for the neighbouring country. Jaiswal said the facility was intended to support the Maldivian financial system and strengthen bilateral financial cooperation.
In addition to the currency swap arrangement, the Indian government has subscribed to USD 350 million worth of treasury bonds issued by the Maldives. These bonds are valid until 2029 and 2030, providing another component of India’s ongoing financial engagement with the country.
India’s engagement with the Maldives extends beyond financial assistance, with essential commodity supplies forming part of the broader development cooperation between the two countries. The partnership covers financial, economic and development-related areas.
Jaiswal described the relationship as a longstanding development partnership between India and the Maldives. “India and Maldives have a longstanding development partnership,” he said, highlighting the broader cooperation alongside the recent completion of the treasury bill repayment. (BVI)
