India postpones USD 50 million T-bill repayment for Maldives

India has once again extended the repayment deadline for a USD 50 million Treasury bill (T-bill) issued by the Maldivian government to the State Bank of India (SBI), which was due this month.

This T-bill is part of a USD 200 million budget support package provided by India in 2019 during former President Ibrahim Mohamed Solih’s administration. The package included USD 50 million in free aid and USD 150 million in T-bills, divided into three tranches of USD 50 million each.

Foreign Minister Dr Abdulla Khaleel said in a post on X, that one of the T-bills was repaid in January last year. A second tranche, due in May 2023, was extended for a year and that one-year extension has now been rolled over again.

The new extension also spans one year, although no specific date was provided.

Minister Khaleel expressed gratitude to the Indian government for supporting Maldives' ongoing economic reform efforts amid financial challenges.

The Indian High Commission in Maldives in a statement said that the rollover was granted without any additional interest.

India had also postponed the repayment of another USD 50 million T-bill in September last year. That amount is now due for repayment in September 2025.

Alongside the T-bill deferrals, India has granted Maldives a currency swap arrangement to ease pressure on foreign reserves. This includes a USD 400 million swap facility and a MVR 30 billion facility.

The agreements were formalized during President Dr Mohamed Muizzu's state visit to India in October last year.