The Maldives has welcomed India’s decision to roll over the first INR 30 billion (approximately USD 320 million) withdrawal under the bilateral currency swap arrangement between the Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA), providing additional financial support to the island nation.
The rollover follows a request by the Maldivian government to extend the repayment period for the facility, which was due within around 10 days. According to reports, India has agreed to extend the facility for a further three months, although an official announcement confirming the extension has yet to be issued by the Indian government.
In a statement, the Maldivian government expressed appreciation for India’s continued support, describing the decision as a reflection of the longstanding partnership between the two countries, founded on historic ties of friendship, mutual respect and goodwill.
The government reaffirmed its commitment, under the leadership of President Dr Mohamed Muizzu, to strengthening relations with key bilateral partners, including India, and expanding cooperation in areas of mutual interest.
It also acknowledged India’s continued assistance under Prime Minister Narendra Modi’s Neighbourhood First policy, emphasising the importance of maintaining strong bilateral relations for the mutual benefit of both countries.
India approved the first USD 320 million withdrawal on April 23 as part of its continued economic and financial assistance to the Maldives. According to the Indian High Commission in Malé, the funds were released under the first drawdown of the SAARC Currency Swap Framework.
The financial assistance was arranged under an agreement reached between the RBI and the Maldivian government during President Muizzu’s state visit to India in October 2024.
The rollover comes as the Maldives continues to manage its financial obligations and strengthen its external financial position. In September, the country repaid USD 50 million in debt owed to India.
The currency swap facility is intended to provide short-term foreign exchange support, helping the Maldives manage its immediate financial requirements while maintaining its economic and financial stability.
The reported three-month extension is expected to provide the Maldives with additional time to meet its repayment obligations as the two countries continue their longstanding economic partnership.
