Maldives Repaid USD 150 Million Loan to India
The Maldives settled its final treasury bill tranche after India covered USD 45 million in interest payments.
Updated on Sept. 18, 2026 in Economic Policy
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The Maldives has successfully repaid a USD 150 million loan to India, marking the final settlement of treasury bills first subscribed to in 2019. The Indian government supported the process by covering approximately USD 45 million in interest costs over the five-year period.
Why it matters
This repayment highlights the ongoing financial stabilization efforts between the two nations and the closure of a significant debt obligation. It underscores the role of Indian financial support in managing the Maldivian treasury through extended bill agreements.
The Maldives settled the final USD 50 million tranche of its USD 150 million debt obligation on September 17, 2026. India also maintains a Rs 30 billion currency swap facility and holds USD 350 million in additional treasury bonds expiring through 2030.
The players
Maldives
An archipelagic nation in the Indian Ocean that recently concluded a significant debt repayment agreement with India.
India
A South Asian nation that provided financial assistance and held treasury bills to support the economic stability of the Maldives.
State Bank of India
The major Indian public sector bank that served as the original subscriber for the Maldivian treasury bills in 2019.
The details
The debt was managed through six one-year extensions on the original treasury bills subscribed by the State Bank of India. India’s involvement in covering the interest payments allowed the Maldives to clear the principal amount following the final settlement of the last tranche.
Timeline
2019: The State Bank of India initially subscribed to the treasury bills.
September 17, 2026: The Maldives settled the final USD 50 million tranche of the bills.
2029: The first expiration date for remaining Indian-held Maldivian treasury bonds.
2030: The final expiration date for remaining Indian-held Maldivian treasury bonds.
Macro View
This settlement mirrors historical patterns of bilateral debt management where larger economies provide extended credit facilities to stabilize regional partners. It represents a shift from emergency liquidity support toward the final reconciliation of long-term treasury obligations.
This repayment signifies improved liquidity for the Maldivian government, which may lead to shifts in domestic fiscal priorities. For international investors, the settlement reduces near-term sovereign debt volatility associated with the treasury bill extensions.
The takeaway
The successful settlement of this debt demonstrates the importance of long-term bilateral financial agreements in maintaining regional economic stability. Policymakers and observers should note that while this specific loan is closed, significant Indian-held bond obligations remain active until 2030.
Further reading
Learn more about international debt dynamics on the /economics/economic-policy/ page.
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