India Clears Rs 3,000 Crore For Maldives
India has approved the first withdrawal of Rs 3,000 crore for the Maldives under the SAARC Currency Swap Framework, continuing its financial assistance to the island nation.
India Maldives Currency Swap Support
The funds are being released as the first drawdown under the Framework on Currency Swap Arrangement for SAARC countries. The arrangement was signed between the Reserve Bank of India and the Maldives government during President Mohamed Muizzu’s state visit to New Delhi in October 2024.
The Indian High Commission in Male said the facility is part of India’s continuing economic and financial support to the Maldives.
Maldives Settles Earlier $400 Million Facility
The fresh withdrawal comes after an earlier $400 million facility, availed by the Maldives under the same framework in October 2024, matured on Thursday.
The Maldives Foreign Ministry said the settlement of the earlier facility reflected the government’s commitment to meeting its financial obligations. Since the SAARC Swap Framework began in 2012, the Reserve Bank of India has provided aggregate swap support of about $1.1 billion to the Maldives.
India Maldives Financial Cooperation
The currency swap arrangement has been an important tool in supporting the financial stability of the Maldives. India had also rolled over Treasury Bills worth $100 million last year, issued by the Maldivian government as emergency financial assistance.
The development also reflects India’s broader regional policy towards the Maldives under its Neighbourhood First approach and Vision MAHASAGAR. New Delhi has maintained that the Maldives remains an important partner and that India has acted as a first responder during periods of economic and financial pressure.
