India releases first Rs 30 billion tranche to Maldives under SAARC Currency Swap Framework

India has approved the first withdrawal of Rs 30 billion as part of its ongoing economic and financial assistance to the Maldives, the Indian High Commission said on Thursday.

According to PTI, in a statement, the High Commission in Malé said the funds are being released under the first drawdown of the SAARC Currency Swap Framework..

“The withdrawal under the ‘Framework on Currency Swap Arrangement for SAARC countries’ was signed between the Reserve Bank of India and the Maldives government during President Mohamed Muizzu’s state visit to New Delhi in October 2024,” the statement added.

The mission also noted that an earlier $400 million facility availed by the Maldives under the same framework in October 2024 matured on Thursday.

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According to Sun Online, in a statement on Thursday, the Maldives Foreign Ministry said the settlement of the $400 million facility reflects the government’s commitment to meeting its financial obligations.

“Since inception of the SAARC Swap Framework in 2012, the Reserve Bank of India has provided an aggregate swap support of USD 1.1 billion to Maldives,” the release said.

The currency swap facility has proved to be an important element in ensuring financial stability of the Maldives, the Indian High Commission said.

Last year, India had rolled-over Treasury Bills worth USD 100 million, issued by the Maldives government as emergency financial assistance at 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 release said.

With inputs from agencies