Bank of Maldives (BML) has rejected claims linking the government’s repayment of the final USD50 million instalment of a USD150 million State Bank of India (SBI) Treasury bill facility to the bank.
The government repaid the final instalment last Thursday. The facility was taken during the administration of former President Ibrahim Mohamed Solih.
BML issued the clarification after former president Mohamed Nasheed alleged that the USD50 million repayment had been made using funds held at BML.
The Finance Ministry has also rejected the claim, saying the repayment was made using money deposited in the Sovereign Development Fund (SDF), which was established to help meet the Maldives’ foreign debt obligations.
BML said it had not provided funds or USD liquidity for the repayment and that the transaction had no effect on its financial position.
“These rumors are untrue and false. The government’s repayment of this debt has nothing to do with BML’s financial position or banking operations,” the bank said.
BML also said it had not used customer deposits or its own funds to repay the USD50 million T-bill.
BML says financial position remains strong
BML said it operates within defined risk appetites and regulatory requirements, supported by its governance and risk management framework.
“The bank’s liquidity, capital and financial condition are continuously monitored by the bank’s management and board. The government’s payment of T-bills to SBI is a separate transaction from the bank,” BML said.
The bank said the repayment had not affected its financial resources or its ability to meet its obligations to customers.
BML calls for fact-based debate
BML said it supports public discussion and debate about the country’s financial system but called for claims concerning a bank’s financial position to be based on established facts.
The bank said statements about a bank’s financial condition can affect customer confidence, shareholders and the stability of the wider financial system.
“Repeated dissemination of untrue information creates discomfort among customers, traders and investors and undermines confidence in the bank, the banking sector as a whole and the economy of the country,” BML said.
The Finance Ministry said the USD150 million SBI facility was repaid in three instalments. The government paid USD50 million in January 2024, another USD50 million in May, and the final USD50 million last Thursday.
The ministry said the facility has now been fully repaid.
According to the ministry, the Maldives currently has about USD644 million in official reserves. It said claims that using USD50 million to repay the debt could hamper imports of essential goods are unfounded.
