The Indian government has approved the roll-over of the INR 30 billion (USD 319 million) currency swap facility extended to the Maldives through their central bank, Reserve Bank of India (RBI).
A statement issued by the High Commission of India in Maldives states that the roll-over of the INR 30 billion Currency Swap Facility, under the Framework on Currency Swap Arrangements for SAARC Countries, was approved in line with India's continued commitment to support and assist the people and the Government of Maldives.
The central bank, Maldives Monetary Authority, took the first drawdown of this Currency Swap Facility on April 23 this year. The Currency Swap Facility is a short-term financial facility extended for a period of three months. The government has had previous currency swap facilities extended to six months as well.
The Currency Swap Arrangement was signed between India and the Maldives during the State Visit of President Dr Mohamed Muizzu to India in October 2024. Through this, India committed to extend USD 400 million and INR 30 billion to the Maldives.
The government of Maldives has earlier this year repaid the USD 400 million currency swap. Last September, the government also repaid the USD 50 million T-Bill issued by the Indian Government. The Finance Ministry has confirmed that, with this, the USD 150 million debt to India, taken over three installments in 2019 has now been fully repaid.
The High Commission of India in Maldives said that the three T-Bills of USD 150 million subscribed by India have been settled by Maldives, for which the Government of India paid USD 42.8 million towards the interest incurred.
The High Commission's statement also reveals that India has also extended two long term Treasury Bonds (T-bonds) of USD 250 million and USD 100 million to the Maldives.
While the Currency Swap Facility roll-over has been approved, Maldives State Reserves stood at USD 547 million at the end of September. The Currency Swap is used as a short-term financial facility to increase reserves.
