India to Rollover $50 Million Treasury Bill for Maldives

On 19th September 2024, in a gesture of goodwill, India announced that it has extended the repayment deadline for a $50 million Treasury Bill at the request of the Maldivian government.

Key Points

Previous Treasury Bill Agreement: The State Bank of India had subscribed to the Treasury Bill under a prior agreement with the previous Maldivian government.
Maldives’ Repayment Efforts: The Maldives repaid $50 million earlier this year but requested an extension for the remaining $150 million.
India’s Crucial Support: The extension of the Treasury Bill comes as the Maldives faces significant economic challenges and implements fiscal reforms.
Maldives-India Diplomatic Strains: Bilateral relations were initially tense under President Muizzu, but misunderstandings have been resolved.
Debt Management and Economic Pressure: Maldives continues to seek deferment of its debts from both China and India, with its foreign reserves severely limited.
Upcoming Diplomatic Visit: President Muizzu is expected to visit India soon, following diplomatic engagements with Turkiye and China.