Male: India has approved the rollover of a Rs 3,000-crore currency swap facility to the Maldives, the Indian High Commission in the island nation said Friday.
The Government of India approved the Maldives’ request for rollover of the INR 30 billion facility under the Framework on Currency Swap Arrangement for SAARC countries, it said in a press release.
The arrangement was signed between the Reserve Bank of India (RBI) and the Maldives Monetary Authority during Maldivian President Mohamed Muizzu’s state visit to India in October 2024.
The first drawdown of INR 30 billion was extended to the Maldives April 23, 2026.
Under the currency swap framework for 2024-27, the bilateral arrangement offers concessions, including in interest rates and other conditions, the press release said.
Since the framework was introduced in 2012, the RBI has provided aggregate swap support of over USD 1.1 billion to the Maldives.
In addition to the currency swap facility, India has subscribed to two long-term Treasury bonds worth USD 250 million and USD 100 million. India also subscribed to three Treasury bills worth USD 150 million, which have been settled by the Maldives.
The Indian government paid USD 42.8 million towards the interest incurred, the press release said.
The currency swap facility and India’s subscription to Treasury bonds and bills have been important instruments in sustaining the financial stability of the Maldives, the release said.
The Maldives holds a special place in India’s Neighbourhood First policy and its MAHASAGAR vision, which stands for Mutual and Holistic Advancement for Security and Growth Across Regions.
India remains committed to deepening bilateral ties with the Maldives, including through the implementation of a joint vision for a comprehensive economic and maritime security partnership adopted during Muizzu’s visit to India in October 2024, the press release said.