Maldives Settles USD 400 Million Swap Facility and Welcomes New Indian Financial Support

Maldives has settled the USD 400 million bilateral currency swap facility obtained from India, while welcoming India’s decision to approve a new INR 30 billion swap drawdown under the SAARC Currency Swap Framework.

The Ministry of Foreign Affairs Maldives stated on Thursday that the repayment reflects the government’s commitment to meeting its financial obligations. The facility had been secured in October 2024 under a bilateral arrangement between the Maldives Monetary Authority and the Reserve Bank of India.

advertisement

India has now approved the first drawdown of INR 30 billion under the 2024–2027 SAARC Currency Swap Framework, which was agreed during the state visit of Mohamed Muizzu to India in October 2024. The updated framework includes concessional terms on interest rates and revised conditions, with the mechanism continuing to play a key role in supporting the Maldives’ financial stability.

Since the introduction of the SAARC Currency Swap Framework in 2012, the Reserve Bank of India has extended a total of USD 1.1 billion in swap support to the Maldives. The Ministry also noted that India rolled over USD 100 million in Treasury bills last year as emergency financial assistance at the request of the Maldivian government.

The government highlighted the importance of India’s continued support under its “Neighbourhood First” policy and Vision MAHASAGAR, describing India as a longstanding partner that has consistently acted as a primary responder to the Maldives.

The Ministry stated that the government remains committed to strengthening cooperation with India while ensuring stability in the country’s financial system.