India's $507 million line of credit to Maldives effective August 27, central bank says
India government-backed 48.50 billion rupees ($506.58 million) line of credit to the Maldives became effective on August 27, 2026, the Reserve Bank of India said on Wednesday, paving the way for individual project-level credit agreements under the facility. The RBI said that the facility will be deployed through individual credit agreements with minimum value of 5 billion rupees each Under the…
A $506.58 million line of credit extended by India to the Maldives officially commenced on August 27, 2026, according to the Reserve Bank of India (RBI). This facility paves the way for project-specific credit agreements, each with a minimum value of 5 billion rupees.
The RBI revealed that the credit will be disbursed through individual agreements, with at least 75% of the funds allocated to goods, works, and services sourced from Indian sellers. The remaining 25% can be procured from international suppliers.
A key stipulation of the agreement is that no portion of the loan can be utilized to settle agency commissions on exports. Exporters are permitted to utilize their own financial resources for such payments.
The Maldives approached India in July 2025 to secure this credit facility via the Export-Import Bank of India. The purpose of the loan is to facilitate various developmental projects within the country.
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