Gov’t to Repay USD 50 Million Treasury Bonds with BML Loan

The government has utilised a loan from the Bank of Maldives (BML) to settle the outstanding USD 50 million (MVR 771 million) worth of treasury bonds, which were originally sold to the State Bank of India (SBI) by the preceding administration.

The decision to turn to the BML loan came after unsuccessful attempts to roll over the USD 50 million bond previously sold to the SBI during the prior regime.

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Furthermore, due to the government having already reached the single borrower limit, BML had to extend the loan to MACL rather than directly to the government.

The SBI bond was originally issued in January of the preceding year under the administration of former President Ibrahim Mohamed Solih, facilitated through the Indian government, with the payment for the bonds made in January.

As of present, neither the government nor any official agency has provided details regarding the transaction, with the government opting not to comment on the matter.

Since authorising a USD 50 million loan to the government, the bank has ceased the release of dollars for telegraphic transfers (TTs) made by companies to facilitate payments abroad for imports. Consequently, BML has recently announced measures including:

Reduction of foreign transaction card limits issued for MVR accounts, should the current situation persist, owing to the decline in dollar receipts.

Additionally, the Cabinet’s decision to raise the card limit for students studying abroad, scheduled to take effect from the 1st of the current month, will not be implemented.