USD 400m facility settled; India clears INR 30b drawal under 2024–2027 SAARC framework

Maldives has settled the USD 400 million bilateral currency swap facility taken from India and has welcomed India’s decision to clear a new INR 30 billion swap drawal under the SAARC Currency Swap Framework.

In a statement on Thursday, the Foreign Ministry said the settlement of the USD 400 million facility reflects the government’s commitment to meeting its financial obligations. The swap was availed in October 2024 under the bilateral arrangement between the Maldives Monetary Authority (MMA) and the Reserve Bank of India (RBI).

The Ministry said India has now cleared the first drawal of INR 30 billion under the 2024–2027 SAARC Currency Swap Framework, which was signed during President Dr. Mohamed Muizzu’s state visit to India in October 2024.

According to the statement, the new framework includes concessional terms on interest rates and conditionalities, and the swap mechanism has been an important tool in supporting Maldives’ financial stability.

The Ministry noted that since the inception of the SAARC Swap Framework in 2012, the RBI has provided USD 1.1 billion in aggregate swap support to Maldives. It also recalled that India rolled over USD 100 million in Treasury bills last year as emergency financial assistance at the request of the Maldivian government.

The statement said the Maldives values India’s continued support under its “Neighbourhood First” policy and Vision MAHASAGAR, and described India as a longstanding partner that has consistently acted as a “first responder” to the Maldives.

The Foreign Ministry said the government remains committed to strengthening cooperation with India and ensuring stability in the country’s financial system.