News Desk
The Maldives has settled the USD 400 million currency swap drawn in October 2024 and welcomed India’s approval of a new INR 30 billion facility, with New Delhi stating that the support is extended to the people and the Government of Maldives. The announcement comes as the country closes one of the most demanding repayment months in its history.
In its statement, the High Commission of India said the first drawal of INR 30 billion (about USD 360 million at current official rates) had been cleared under the SAARC Currency Swap Framework for 2024 to 2027. The release noted that the facility includes concessions on interest rates and conditionalities. It said India has provided an aggregate USD 1.1 billion in swap support to the Maldives since the framework was introduced in 2012 and recalled the rollover of USD 100 million in Treasury Bills last year as emergency assistance.
The Government of Maldives said the new INR facility supports its broader strategy to reinforce economic stability amid the evolving crisis in West Asia. Officials said disruptions to shipping and energy markets continue to create uncertainty for small import‑dependent economies.
The settlement of the USD 400 million swap follows the repayment of the USD 500 million sukuk earlier this month and the rollover of facilities from the Abu Dhabi Fund. These form the core of the roughly USD 1 billion in obligations falling due in April.
According to earlier reporting, usable reserves remained steady in the weeks leading up to the sukuk repayment, supported by inflows and the Government’s decision not to monetise the payment. Officials said reserve levels continue to be monitored closely as global markets react to the Gulf crisis.
Speaking to Etruth.mv earlier, Chief Government Spokesperson Mohamed Husain Shareef said discussions on the rollover of the USD 400 million swap had been ongoing and that the administration valued India’s past support. He said the Government remained hopeful for a favourable outcome based on India’s record as a development partner.
Reporting by The Economic Times noted that India extended the USD 400 million swap in 2024, rolled it over twice despite strict conditions, and allowed the rollover of two interest‑free USD 50 million Treasury Bills in 2025. These steps were described as exceptional for a neighbouring country. The Indian High Commission’s statement also referenced the same history of support.
On sovereign ratings, the Government said agencies are still assessing the impact of the sukuk repayment and other financing developments. Moody’s rates the Maldives at Caa2 with a negative outlook. Fitch maintains the Maldives at CC.
Officials said the coming days will remain important as the Government tracks supply chains, fuel shipments and reserve movements while the Gulf crisis continues to unfold.
