India has reportedly agreed to extend a USD 320 million currency swap facility for the Maldives by another three months, providing additional financial relief to the island nation as it manages its repayment obligations.
The Maldivian government 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).
According to media reports, the extension follows a request from the Maldivian government, with repayment originally due in approximately 10 days.
Although the extension has been welcomed by the Maldives, an official announcement confirming the three-month rollover has yet to be issued by the Indian government.
In a statement, the Maldivian government expressed appreciation for India’s continued financial support, describing it as a reflection of the longstanding friendship and cooperation between the two countries.
The government, led by President Mohamed Muizzu, reaffirmed its commitment to strengthening bilateral relations with India and acknowledged assistance provided under Prime Minister Narendra Modi’s Neighbourhood First policy.
India approved the initial USD 320 million withdrawal on April 23, 2026, under the SAARC Currency Swap Framework.
The arrangement was established following an agreement reached during President Muizzu’s state visit to India in October 2024.
The Maldives also repaid USD 50 million in debt owed to India in September.
The reported extension is expected t provide additional time for the Maldives to meet its financial obligations while supporting its foreign exchange requirements and economic stability. (Newswire)
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