India Absorbs USD 45 Million in Interest as Maldives Settles USD 150 Million Treasury Bill Facility
President Dr Mohamed Muizzu of the Maldives (L) and Prime Minister of India, Narendra Modi on October 8, 2024, exchanging virtual agreements between Maldives and India | Photo: President’s Office
India absorbed approximately USD 45 million in interest payments over a five-year period to assist the Maldives with financial relief, the Indian Ministry of External Affairs (MEA) confirmed on Friday, following Malé’s full settlement of a USD 150 million Treasury bill facility.
Speaking at a bi-weekly media briefing, MEA Spokesperson Randhir Jaiswal stated that while the Maldivian authorities repaid the principal amount of the facility, the Indian government bore the entire interest burden throughout its five-year tenure.
“It may also be noted that while the principal amount of the Treasury bills was paid by the Government of Maldives, the interest payment of all the US dollars 150 million Treasury bills over the past five years was borne by the Government of India,” Jaiswal said. “The total amount paid by India in interest settlement was close to US dollars 45 million.”
The final tranche of USD 50 million Treasury Bills, out of a total of USD 150 million, subscribed by State Bank of India with the Government of Maldives has been successfully settled on 17 Sep 2026, MEA spox pic.twitter.com/DIr6WPvG7p
— Sidhant Sibal (@sidhant) September 18, 2026
The financial arrangement dates back to 2019, when the previous President Solih’s administration secured the USD 150 million facility through the State Bank of India (SBI) to support the state budget. The arrangement was structured across three separate Treasury bills.
According to the Maldivian Ministry of Finance, the debt was cleared in phased tranches under the current administration. Maldives repaid USD 50 million in January 2024, followed by another USD 50 million on 11 May. The final USD 50 million instalment was settled on Thursday upon reaching its due date, fully clearing the debt facility.
The conclusion of the repayment schedule comes alongside updated figures on the island nation’s financial reserves. The Ministry of Finance reported that official gross reserves stood at USD 644 million at the end of August 2026.
However, official data from the Maldives Monetary Authority (MMA) indicates lingering pressure on foreign exchange availability. Net usable reserves, representing the liquid foreign currency available to meet essential import requirements, dropped by 9.6 per cent month-on-month, falling from USD 221.9 million in July to USD 200.6 million at the end of August.
