The Ministry of Foreign Affairs of the Maldives announced on Friday that the Maldives has fully repaid a tender instrument worth $150 million, which was signed by the State Bank of India (SBI) in 2019. The final tranche of $50 million was settled on September 17.
A Ministry of Foreign Affairs representative, Randhir Jaiswal, specified that this financial instrument was extended six times, and the completion of payments marked the final closure of this obligation. Jaiswal stated at a press briefing: 'The final tranche of $50 million of the tender bonds, out of the total amount of $150 million signed by the State Bank of India with the Government of Maldives, was successfully settled on September 17.'
These $150 million tender bonds were acquired by SBI in 2019 as part of providing financial support to the Maldives. Although the Maldivian government repaid the principal debt, India covered the interest expenses for this instrument.
Jaiswal added that despite the Maldivian Government paying the principal amount of the tender bonds, the Government of India was responsible for the interest payments on all $150 million of the tender bonds over the past five years. The total amount India paid in interest payments amounted to approximately $45 million.
The loan repayment occurs amid ongoing efforts by the Maldives to manage its debt obligations and foreign exchange position. The Ministry of Finance reported that the government has developed mechanisms to ensure that debt servicing does not disrupt the import of essential goods, including fuel, food, and medical supplies.
The Ministry also emphasized that necessary measures have been taken to ensure the constant availability of foreign currency for the import of essential goods such as food, fuel, and medicine, as protecting the uninterrupted supply of these services remains the Government's top priority.
India continues to provide financial support to the Maldivian financial system. Jaiswal reported that New Delhi provided the Maldives with a currency swap worth 30 billion rupees, and SBI purchased Maldivian bonds worth $350 million, maturing in 2029 and 2030.
Furthermore, the MFA noted that both countries continue to cooperate in development projects and the supply of necessary goods. The Maldivian Government, for its part, continues negotiations with international financial institutions and bilateral partners to strengthen its foreign exchange position.
