Maldives Clears Final USD 50 Million Installment of USD 150 Million India‑Backed T‑Bill Facility

The Maldives has fully repaid the USD 150 million Treasury‑bill (T‑bill) facility that was extended by India’s State Bank of India (SBI) in 2019 during the administration of former President Ibrahim Mohamed Solih. 

The Ministry of Finance and Public Enterprises has confirmed that the last USD 50 million tranche has now been cleared, bringing the entire debt to zero.

The repayment was executed in three equal phases—an initial USD 50 million payment in January 2024, a second USD 50 million in May, and the final USD 50 million this month. The Ministry highlighted that the country’s official foreign‑exchange reserves stand at roughly USD 644 million, dispelling speculation that the settlement would jeopardise the import of essential commodities such as fuel, staple foods and other necessities.

“Through disciplined debt‑management practices—regular contributions to the Sovereign Development Fund, early securing of financing ahead of maturity dates, and constructive dialogue with international partners—we have ensured that the repayment does not impair our ability to meet critical import needs,” the Ministry said in a statement.

The facility originated in 2019 when India, via SBI Male’, subscribed to Maldivian T‑bills to bridge budget deficits and sustain liquidity. Over the ensuing years, the archipelago grappled with chronic foreign‑exchange shortages and rising external debt, prompting rating agencies such as Fitch and Moody’s to downgrade its sovereign rating amid default concerns. In response, India periodically rolled over or deferred repayment schedules, providing temporary relief to the Balance of Payments.

The Sovereign Development Fund (SDF), established to buffer the economy against debt shocks, played a pivotal role in this repayment schedule. By earmarking SDF resources for debt service, the government was able to meet its obligations without eroding the reserves needed for day‑to‑day imports.

The Ministry reiterated the administration’s commitment to responsible debt stewardship, continued accumulation of national reserves, and the uninterrupted delivery of essential services to all Maldivians.