Indian govt: India paid USD 45M incurred as interest when Maldives repaid loan

Although the Maldives, on Thursday, made the final payment on a USD 150 million Treasury Bill (T-Bill) borrowed from the State Bank of India (SBI) during the administration of former president Ibrahim Mohamed Solih in 2019, the Indian government, on Friday, revealed that it had covered the interest accrued on the debt.

Speaking at a press briefing on Friday, Randhir Jaiswal, spokesperson for India’s Ministry of External Affairs, said the Indian government had paid USD 45 million in interest accumulated over the past five years on the USD 150 million T-Bills issued by the Maldivian government.

According to Jaiswal, the Maldivian government, on Thursday, paid the final USD 50 million installment of the USD 150 million T-Bills purchased by SBI in 2019. He said the maturity of the T-Bills had been extended six times over the years, with each extension lasting one year. The spokesperson further explained that while the Maldivian government repaid the principal amount, the Indian government assumed responsibility for approximately USD 45 million in interest payments.

The final tranche of USD 50 million Treasury Bills, out of a total of USD 150 million, subscribed by State Bank of India with the Government of Maldives has been successfully settled on 17 Sep 2026, MEA spox pic.twitter.com/DIr6WPvG7p

— Sidhant Sibal (@sidhant) September 18, 2026

The USD 150 million T-Bill facility comprised three installments purchased by SBI as budgetary support during former president Solih’s administration. Under the current administration of President Dr. Mohamed Muizzu, the first USD 50 million installment was repaid in January, followed by a second USD 50 million payment in May.

In a statement on Thursday, the Maldivian Finance Ministry stated that despite settling the debt, the government retains sufficient funds to finance imports of essential commodities, including food, fuel, and medicine. The clarification came after former president Mohamed Nasheed claimed on Wednesday that the USD 50 million payment would deplete the country’s usable reserves and affect its ability to import essential goods.

According to statistics released by the Maldives Monetary Authority (MMA), the country’s official reserves stood at USD 643.8 million at the end of August, while usable reserves amounted to USD 200.6 million.

Jaiswal also highlighted India’s provision of a currency swap arrangement worth 30 billion Indian Rupees to support the Maldivian financial system. He added that SBI has purchased an additional USD 150 million in Treasury Bonds.

The Indian Ministry of External Affairs further stated that, alongside this financial assistance, numerous development projects between the two countries remain underway, while the supply of essential goods to the Maldives continues without interruption.