Maldives Clears US$150 Million SBI Facility with Final Payment

The Maldives has repaid the final US$50 million of a US$150 million Treasury bill facility obtained from State Bank of India in 2019, the Finance Ministry announced on 17 September.

The ministry's settlement statement says the final payment was made on its maturity date, completing repayment of the facility raised in three tranches.

The first US$50 million was repaid in January 2024. A second payment of the same amount followed on 11 May 2026, with the remaining US$50 million settled this month.

The ministry said the borrowing had provided budget support. It also said arrangements were in place to maintain foreign currency for imports of fuel, food and medical supplies.

The government said it was accumulating money in the Sovereign Development Fund as part of its preparations to meet debt obligations. Its statement also referred to discussions with international financial institutions and bilateral partners.

BML denies financing the payment

Bank of Maldives issued a separate clarification on 19 September, rejecting claims that it supplied the dollars for the government's final payment.

BML said the repayment came from the Sovereign Development Fund and did not use customer deposits, the bank's own resources or other BML funds.

The bank also denied that the Treasury bill settlement had affected its financial position, operations or ability to meet obligations to customers. Those statements were issued amid public discussion of dollar availability.

In a separate dollar-transfer update the same day, BML reported US$653 million in dollar sales through August and a 33.33 per cent increase in outflows.

It attributed delays in telegraphic and interbank dollar transfers to a temporary mismatch between supply and demand. BML forecast that processing times would return to normal by the end of the following week.

The Finance Ministry's repayment announcement concerns the US$150 million SBI facility issued in 2019. It does not state that all Maldives sovereign debt has been repaid.