According to a statement issued by the Indian mission on Thursday (23 April), the funds are being disbursed under the first drawdown of the SAARC Currency Swap Framework.
The mission said the withdrawal under the Framework on Currency Swap Arrangement for SAARC countries’ stems from an agreement inked between the Reserve Bank of India and the Maldivian government during President Mohamed Muizzu’s state visit to New Delhi in October 2024.
An earlier facility of $400 million, drawn down by the Maldives under the same framework in October 2024, matured on Thursday, the High Commission added.
The Maldives Foreign Ministry, in a separate statement issued on Thursday, said the successful settlement of the $400 million facility underscores the government’s resolve to honour its financial commitments, according to a Sun Online report.
“Since inception of the Saarc Swap Framework in 2012, the Reserve Bank of India has provided an aggregate swap support of $1.1 billion to Maldives,” the release said.
The Indian High Commission noted that the currency swap arrangement has emerged as a key tool in safeguarding the financial stability of the Maldives.
In the previous year, India had also rolled over Treasury Bills worth $100 million, which had been issued by the Maldivian government as emergency financial support on their request.
“Maldives is an important partner under India’s ‘Neighbourhood First’ policy and Vision MAHASAGAR. India, as a friendly neighbour, has always been the ‘first responder’ for Maldives,” the Indian mission said.
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