Maldives asks India for extension to USD 400mn currency swap facility: reports

The Maldivian government has requested an extension to the USD 400 million currency swap facility provided by India, according to Indian media reports.

Both Economic Times and Hindustan Times reported on Sunday that the Maldives has asked India to extend the USD 400 million currency swap facility provided in October 2024. According to the newspapers, the facility has already been rolled over twice at Maldives’ request, despite stringent rules and requirements.

Quoting Indian government officials, the newspapers reported that while the Indian government is examining this request, the existing rules and terms of the currency swap facility, such as the need for a cooling off period between two drawals and the maximum number of rollovers permitted, make it “extremely difficult” to be considered in a favorable manner.

They also told the newspapers that the two previous extensions on the USD 400 million currency swap facility, as well as the rollover of USD 50 million treasury bills, had been an “exceptional gesture” to a close neighbor.

The Maldivian government has yet to confirm whether it has requested an extension.