India Grants Deadline Extension for Maldives $50 Million Govt Bonds Repayment

India has extended the repayment deadline of a $50 million Treasury Bill issued by the Maldives government. The bond, subscribed by the State Bank of India on behalf of the Maldives, has been rolled over for one year following a request from the Maldives. 

As per the news reports, the Indian High Commission in Male confirmed the move, calling it emergency financial assistance under a government-to-government arrangement.

Part of 2019 Budget Support

The Treasury Bill is linked to a $200 million budget support package extended in 2019. Of this, one $50 million tranche was repaid in January 2024. India had already deferred another $50 million payment in 2023, and this rollover continues that support. 

Since March 2019, India has facilitated annual, interest-free subscriptions of such Treasury Bills for the Maldives.

Wider Financial Ties

The extension comes alongside other financial measures. India had earlier deferred repayment of a $100 million bond and provided a $750 million currency swap facility. Out of this swap window, $400 million has been drawn, with the Maldives government in talks with the Reserve Bank of India to access the remaining ₹30 billion.

Infrastructure Projects

India and the Maldives also reviewed progress on the Greater Male Connectivity Project, which will link Male to Thilafushi. The review was co-chaired by officials from both governments, along with representatives from Exim Bank of India, project contractor Afcons, and consultant Arup.

Read more: India-Israel Bilateral Investment Treaty Signed To Boost Trade Ties!

Conclusion

The extension of the $50 million repayment deadline adds to a series of financial and infrastructure arrangements between India and the Maldives, underlining ongoing cooperation.

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