India Extends $50M Interest-Free Loan to Maldives for One Year, Trains Pilots

May 13, 2024, 09:30 AM

India has agreed to extend the debt repayment deadline for the Maldives by one year, involving a $50 million loan. This extension is part of a broader agreement that includes replacing Indian military personnel with civilians and training local pilots in the Maldives. The loan, facilitated through Government Treasury Bills, is interest-free and was arranged under a government-to-government scheme by the State Bank of India at zero-cost to the Maldives. Maldives Foreign Minister Moosa Zameer expressed gratitude towards India for this support, highlighting it as a gesture of goodwill amid the countries' longstanding relationship. This financial aid comes at a crucial time as the International Monetary Fund has warned the Maldives about potential debt distress due to increasing borrowings, primarily from China.