Maldives Fully Settles USD 150 Million Treasury Bill Debt to India

The Maldivian government has officially settled the final USD 50 million installment of a USD 150 million Treasury Bill facility sourced from the State Bank of India (SBI). The debt, originally secured in 2019 under the administration of former President Ibrahim Mohamed Solih to support budget financing, has now been repaid in full. According to the Ministry of Finance and Public Enterprises, the settlement was executed in three stages. The current administration previously repaid USD 50 million in January 2024 and another USD 50 million on May 11, 2024, concluding the obligation with the final payment. Addressing public concerns regarding foreign exchange liquidity, the Finance Ministry emphasized that the repayment was carefully managed to avoid disrupting the import of essential goods. The government assured that the availability of foreign currency for critical supplies, including food, fuel, and medical necessities, remains unaffected. Data from the Maldives Monetary Authority (MMA) supports this stability, reporting that the Maldives held approximately USD 644 million in official reserves at the end of August 2024. The government dismissed claims that the debt settlement would lead to currency shortages for essential imports, labeling such concerns as unfounded. The Finance Ministry stated that its current strategy focuses on prudent and forward-looking debt management. This includes ensuring that funds are deposited into the Sovereign Development Fund in accordance with national regulations and finalizing financial arrangements well ahead of repayment deadlines. To further bolster the nation's economic resilience, the government is conducting high-level consultations with international financial institutions and development partners. These discussions are reportedly progressing successfully and are expected to strengthen the country's foreign currency reserves moving forward. By clearing this significant liability, the administration reaffirms its commitment to responsible debt management and the preservation of national reserves, while ensuring that basic services and essential goods remain accessible to the Maldivian public without interruption.