Maldives Faces Deadline on $50 Million Payment to India Amid Ongoing Negotiations

The Maldives government faces a deadline to pay $50 million to India as the third instalment of a $150 million Treasury bill issued in 2019 by the State Bank of India. The first payment was made in January, while the second due in May was rolled over. Under former President Solih, India covered interest and signaled debt conversion to a grant, but relations have strained since President Muizzu's election. Experts say the payment is possible as a last resort due to economic struggles and USD shortage. Reports link the payment to India pressuring the Maldives to cancel the UTF reclamation project by China Harbour, located 14.6 km from Malé. India may roll over the payment if the project is withdrawn, but no official confirmation exists. The Maldives government has not commented.

The Maldives government faces a deadline to pay $50 million to India as the third instalment of a $150 million Treasury bill issued in 2019 by the State Bank of India. The first payment was made in January, while the second due in May was rolled over. Under former President Solih, India covered interest and signaled debt conversion to a grant, but relations have strained since President Muizzu's election. Experts say the payment is possible as a last resort due to economic struggles and USD shortage. Reports link the payment to India pressuring the Maldives to cancel the UTF reclamation project by China Harbour, located 14.6 km from Malé. India may roll over the payment if the project is withdrawn, but no official confirmation exists. The Maldives government has not commented.

The Maldives government faces a deadline to pay $50 million to India as the third instalment of a $150 million Treasury bill issued in 2019 by the State Bank of India. The first payment was made in January, while the second due in May was rolled over. Under former President Solih, India covered interest and signaled debt conversion to a grant, but relations have strained since President Muizzu's election. Experts say the payment is possible as a last resort due to economic struggles and USD shortage. Reports link the payment to India pressuring the Maldives to cancel the UTF reclamation project by China Harbour, located 14.6 km from Malé. India may roll over the payment if the project is withdrawn, but no official confirmation exists. The Maldives government has not commented.

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