Nasheed Urges Cross-Party Talks on Maldives’ Debt to India

Former President Mohamed Nasheed has called on the government to engage with all political parties in discussions concerning the Maldives’ significant debt obligations to India.

In a post on the social media platform X, Nasheed noted that a USD 400 million debt owed to India is due for repayment in April. He highlighted that while the repayment deadline has already been extended twice, reports in Indian media suggest that financial regulations may prevent a further extension.

Referring to the country’s current financial position, Nasheed pointed to the government’s recent settlement of a USD 525 million Sukuk bond earlier this month and raised concerns over whether foreign currency reserves remain sufficient. He warned that any default on debt obligations could have serious consequences for the financial system, the government and the private sector.

Nasheed also stated that a key objective of the ‘Bodu Badhalu’ reform agenda proposed by the Maldivian Democratic Party is to facilitate broad discussions on debt management strategies.

He emphasised that reaching an agreement with India through a process supported by all political parties would improve the likelihood of a successful outcome, and called on the government to engage in dialogue.

The remarks follow media reports from India indicating that the administration of Mohamed Muizzu has requested an additional extension of the USD 400 million currency swap facility provided by India.

The facility, which was initially extended in October 2024, has already been renewed twice. Despite legal and administrative constraints under the SAARC currency swap framework regarding further extensions, reports indicate that the Indian government is exploring possible solutions within regulatory limits.