The Indian government has agreed to roll over a USD 50 million Treasury Bill for an additional year, responding to a request from the Muizzu government. This decision, announced by the Foreign Ministry, pertains to a Treasury Bill that matured on September 19, 2024, and was acquired through the State Bank of India (SBI).
The backdrop of this financial arrangement is complex. SBI initially purchased a total of USD 200 million in Treasury Bills under an agreement made by the former administration, with each Bill costing USD 50 million. Historically, these Treasury Bills have been rolled over annually, with interest payments covered by India. However, under the current administration led by President Dr. Mohamed Muizzu, the Maldives made a notable repayment of USD 50 million in January 2024, signaling a shift in financial strategy.
As the Maldives navigates its economic landscape, the request for an extension on the remaining USD 150 million demonstrates both the urgency of its financial needs and the ongoing reliance on Indian support. The Indian High Commission in the Maldives confirmed that the rollover was an act of “emergency financial assistance,” underscoring the close ties and dependencies between the two nations.
The Foreign Ministry expressed gratitude for India’s “generous support,” framing this extension as timely for the Maldives’ ongoing fiscal consolidation efforts aimed at addressing significant economic challenges.
