Male
India has approved the first withdrawal of ₹30 billion under the SAARC Currency Swap Framework to support the Maldives’ financial stability, according to the Indian High Commission in Male.
The facility is part of the broader currency swap arrangement between the Reserve Bank of India and the Maldivian government, signed during President Mohamed Muizzu’s visit to India in October 2024. The framework is designed to provide short-term liquidity support to SAARC member countries during financial stress.
The latest withdrawal follows the earlier $400 million facility availed by the Maldives under the same framework, which matured recently. The Maldivian government confirmed that it has settled the previous obligation, underscoring its commitment to meeting external debt repayments.
India has provided substantial financial support to the Maldives over the years through multiple channels, including currency swaps and emergency credit lines. Since 2012, the RBI has extended over $1.1 billion in swap assistance to the island nation.
The High Commission noted that the swap arrangement has played a key role in maintaining macroeconomic and financial stability in the Maldives, particularly during periods of external pressure.
India also reiterated that the Maldives remains a key partner under its Neighbourhood First policy and Vision MAHASAGAR, highlighting New Delhi’s role as a “first responder” in times of economic need.
The assistance comes as the Maldives continues to manage external financing pressures while balancing debt obligations and economic recovery efforts.
