Maldives Repays Second Installment of Indian Loan, Transfers ₹425 Crore to SBI
President Mohamed Muizzu says repayment marks a major step toward reducing foreign debt and stabilising the Maldivian economy
In a significant financial development, the Maldives government has repaid the second installment of a loan taken from India, transferring 50 million US dollars — approximately ₹425 crore — to the State Bank of India (SBI). The announcement was made by Maldivian President Mohamed Muizzu during a special press conference in Male on Monday.
President Muizzu stated that his administration had fulfilled its financial commitment to India by clearing the second Treasury Bill issued under the loan arrangement. Earlier, the Maldives had also repaid a similar 50 million dollar Treasury Bill in January 2024.
According to Muizzu, another Treasury Bill worth 50 million dollars remains due in September this year. He said the repayments reflect his government’s efforts to stabilise the national economy and reduce dependence on foreign debt.
Treasury Bills are short-term financial instruments used by governments to raise funds and are generally repaid within a fixed period. The loans were originally extended in 2019 when the Maldives was facing a severe budget deficit and financial pressure.
The Maldivian President noted that the previous government led by former President Ibrahim Mohamed Solih had relied on rolling over these Treasury Bills annually instead of repaying them. Under the rollover system, older debt obligations were extended through the issuance of new bills.
Muizzu claimed that his administration has now started clearing these pending dues, which could help the country reduce nearly 150 million dollars (around ₹1,275 crore) in debt obligations.
India has remained one of the Maldives’ key financial partners over the years, offering economic support during periods of crisis. During difficult economic conditions, India had previously extended the repayment tenure of these Treasury Bills to provide relief to the island nation.
The latest repayment comes at a time when the Muizzu government is focusing on improving fiscal discipline, strengthening economic stability, and reducing the country’s external debt burden.
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