The Ministry of Finance and Public Enterprises has clarified that the final USD 50 million payment on the State Bank of India (SBI) Treasury bill facility was financed through the Sovereign Development Fund (SDF), rejecting claims that public deposits held at the Bank of Maldives (BML) were used.
The clarification came after allegations circulated that dollars deposited by customers at BML had been used to settle the government obligation. The Finance Ministry said there was no basis for the claims and that the government had prepared for the repayment in advance by accumulating funds in the SDF.
The USD 50 million payment was completed on September 17, clearing the final portion of a USD 150 million T-bill facility subscribed by SBI in 2019 during former President Ibrahim Mohamed Solih’s administration. The facility had been obtained as budget support.
According to the Finance Ministry, the current administration repaid the facility in three stages. The first USD 50 million was settled in January 2024, a further USD 50 million was paid on May 11, 2026, and the remaining USD 50 million was cleared when it matured on September 17, 2026.
President Dr Mohamed Muizzu had announced during a press conference on May 11 that the government intended to settle the final USD 50 million when it matured in September. The Finance Ministry said the eventual payment was made through funds accumulated in the SDF following preparations made ahead of the maturity date.
The SDF was established to strengthen the government’s capacity to meet sovereign debt repayments and reduce refinancing risks. The 2026 government budget projected USD 149 million in transfers to the fund during the year and identified the SDF as a source for meeting external financing requirements.
The Finance Ministry has also sought to reassure the public that repayment of the SBI facility will not disrupt the availability of foreign currency for essential imports. It said arrangements remain in place to secure foreign exchange needed for food, fuel and medical supplies.
Official reserves stood at approximately USD 644 million at the end of August, according to figures cited by the Finance Ministry. The government said it continues to make advance preparations for debt maturities while holding discussions with international financial institutions and bilateral partners aimed at strengthening the country’s foreign exchange position.
The September 17 payment completed repayment of the full USD 150 million principal under the SBI facility. India’s Ministry of External Affairs has separately said the Indian government covered approximately USD 45 million in interest payments associated with the facility over five years.
