Indian Government Grants Extension for Maldives’ Loan Repayment Deadline

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The government of India has granted an extension to the Maldives for the repayment of USD 50 million out of the USD 100 million outstanding budget support borrowed in 2019 by the previous administration.

The State Bank of India (SBI) in Maldives has agreed to postpone the repayment deadline for USD 50 million of the total USD 200 million outstanding budget support, as confirmed by the Indian High Commission in Maldives today. This extension pertains to Treasury bills issued by the Maldivian government.

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Under the terms of the arrangement, the Government of India is responsible for covering the interest payments on the borrowed amount. This extension was granted in response to a special request made by the Maldives government, as disclosed in a statement by the Indian High Commission.

Previously, the Maldives government had repaid USD 50 million of the total loan amount in January of the preceding year. With the recent extension, USD 50 million is now scheduled for repayment in May next year, while the remaining USD 50 million is due for repayment in September this year.

The request for the extension was made by Maldives’ Foreign Minister Moosa Zameer during his recent visit to India, where he engaged in discussions with India’s External Affairs Minister Dr. S. Jaishankar.

In response to the decision, the Maldivian Foreign Ministry has expressed gratitude to the Government of India for its support in this matter. 

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