The Maldives has fully repaid a $150 million Treasury bill facility subscribed by the State Bank of India (SBI) in 2019, with the final $50 million tranche settled on September 17, the ministry of external affairs (MEA) said on Friday.MEA spokesperson Randhir Jaiswal said the facility had been extended six times, with the final tranche marking the completion of the repayment.“The final tranche of US dollars 50 million Treasury bills, out of a total of US dollars 150 million subscribed by the State Bank of India with the Government of Maldives, has been successfully settled on 17th September,” Jaiswal said at a media briefing.The $150 million Treasury bills were subscribed by SBI in 2019 as part of financial support to the Maldives. While the Maldivian government repaid the principal, India covered the interest costs associated with the facility.“It may also be noted that while the principal amount of the Treasury bills was paid by the Government of Maldives, the interest payment of all the US dollars 150 million Treasury bills over the past five years was borne by the Government of India,” Jaiswal said.“The total amount paid by India in interest settlement was close to US dollars 45 million,” he added.The repayment comes as the Maldives continues to manage its debt obligations and foreign exchange position. Its Ministry of Finance said the government had made arrangements to ensure that debt servicing would not disrupt imports of essential commodities, including fuel, food and medical supplies.“The Government has also put in place the necessary arrangements to ensure the continued availability of foreign currency for the import of essential goods, including fuel, food items and medical supplies,” the ministry said.“Safeguarding the uninterrupted supply of these essential goods and services remains a key priority of the Government.”India continues to provide financial support to the Maldivian financial system. Jaiswal said New Delhi had extended an Rs 30 billion currency swap facility to the Maldives, while SBI has subscribed to $350 million worth of Maldivian Treasury bonds valid until 2029 and 2030.
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“In addition, the State Bank of India has also subscribed to US dollars 350 million worth of Treasury bonds which are valid till 2029 and 2030.”The MEA also said the two countries continue to cooperate on development projects and supplies of essential commodities.The Maldives government, meanwhile, said it was continuing discussions with international financial institutions and bilateral partners to strengthen its foreign exchange position.
