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India Approves Maldives’ Request to Extend INR 30 Billion Currency Swap Facility

India has approved the Maldives government's request to extend an INR 30 billion (₹3,000 crore) currency swap facility, providing additional financial relief to the country as it continues to manage its economic challenges and repayment obligations.

Published by:
Nazeem Noushad Nazeem Noushad
Editor-in-Chief

The High Commission of India in the Maldives announced the decision on Friday, October 16, stating that it reflects India’s continued commitment to supporting the Maldives.

The facility was arranged under the SAARC Currency Swap Framework for 2024–2027, following an agreement signed between the Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA) during President Dr Mohamed Muizzu’s state visit to India in October 2024.

According to the High Commission, the initial INR 30 billion was disbursed on April 23, 2026. The latest approval allows the existing facility to be rolled over, giving the Maldives additional time to meet its repayment obligations.

The arrangement offers concessional terms, including favourable interest rates and other financial conditions.

India has provided more than USD 1.1 billion in aggregate currency swap support to the Maldives since 2012. It has also subscribed to two long-term Maldivian Treasury bonds worth USD 250 million and USD 100 million.

 

The High Commission further noted that the Maldives had settled three Treasury bills of USD 150 million subscribed to by India, with the Indian government paying USD 42.8 million towards the interest incurred.

India reaffirmed its commitment to strengthening bilateral relations under its Neighbourhood First policy and MAHASAGAR vision, particularly in economic development and maritime security.

The extension is expected to ease immediate financial pressures on the Maldives, although the revised repayment deadline has not been disclosed.

#India
#Maldives
#Maldives Monetary Authority (MMA)
#Currency Swap