The Maldives repaid a 150 million loan to India on 17 September 2026. The repayment closed the final 50 million tranche of treasury bills originally subscribed by the State Bank of India in 2019.
Loan Facility and Treasury Bills
The facility consisted of treasury bills subscribed by the State Bank of India in 2019. The loan was extended six times, and each extension covered a period of one year.
The Maldivian government repaid the principal amount, while the Indian government bore the interest payments. The total interest paid over five years was approximately $45 million.
Foreign Exchange Reserves of the Maldives
The foreign exchange reserves of the Maldives fell below 600 million after the repayment. The reserves stood at 643.8 million at the end of August 2026.
Foreign exchange reserves are external assets held by a country’s monetary authority and usually include foreign currency assets, gold, Special Drawing Rights, and reserve positions with the International Monetary Fund.
India-Maldives Financial Support Instruments
India continues to extend financial support to the Maldives through an Rs 30 billion currency swap facility. India has also subscribed to $350 million worth of Maldivian treasury bonds, with validity until 2029 and 2030.
Important Facts for Exams
- The State Bank of India is India’s largest public sector bank and was established in 1955.
- Treasury bills are short-term debt instruments issued by governments for borrowing.
- Currency swap facilities are used by central banks to provide foreign currency liquidity.
- Foreign exchange reserves are managed by a country’s monetary authority for external stability and import payments.
Debt Settlement and Bilateral Finance
The repayment was confirmed on 17 September 2026 by Maldives Finance Minister Hassan Zareer. India’s External Affairs Ministry spokesperson Randhir Jaiswal confirmed the settlement on 18 September 2026.
