Maldives repays $150 million loan to India as economic crises persist
The treasury bills were subscribed by the SBI in 2019 and had been extended on six occasions, each time for a year.
The Maldives has repaid a $150 million loan from India, settling the final $50 million tranche of treasury bills on September 17. The Indian government covered the interest payments over the past five years, totaling $45 million. In addition to the loan repayment, India extended a ₹30 billion currency swap facility to support the Maldives' financial system.
The country's foreign exchange reserves, currently at $643.8 million, will fall below $600 million due to the repayment. India has played a crucial role in assisting the Maldives, providing credit lines and a $400 million currency swap facility in 2024 to address liquidity issues. The Maldives faces significant economic challenges, including high public debt, low foreign exchange reserves, and heavy reliance on tourism and imports.
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