India Grants One-Year Extension on Maldives’ USD 50 Million Treasury Bill

The Government of India has granted a one-year extension on the repayment of the third USD 50 million Treasury Bill, marking the second such extension this year.

In 2019, under the administration of former President Ibrahim Mohamed Solih, the Maldives sought USD 200 million in budgetary support from the State Bank of India. This sum included a USD 50 million grant, with the remainder divided into three USD 50 million Treasury Bills (T-bills).

advertisement

advertisement

advertisement

The first T-bill, amounting to USD 50 million (MVR 770 million), was repaid by the Maldivian government in January 2023. The second T-bill, which was due for repayment in May 2024, received a one-year extension from the Indian government. The third and final T-bill, which matured on 19 September 2024, has now been similarly extended.

In a statement issued by the Maldivian Ministry of Foreign Affairs, it was confirmed that the Indian government had granted the extension following a request by Maldivian Foreign Minister Moosa Zameer. The request was made during the August visit of India’s Minister of External Affairs, Dr S. Jaishankar, to the Maldives.

“This is the second rollover granted by the Government of India this year, following the first rollover of a USD 50 million Treasury Bill on 13 May 2024,” the statement read.

The Ministry further expressed its gratitude for India’s continued support, noting that the extension comes at a crucial time as the Maldives implements a fiscal consolidation programme to address economic challenges.

In addition, it was recently announced that Maldivian President Dr Mohamed Muizzu will be making an official visit to India in the near future.