India allows Maldives another year to make $50 million payment

India on Thursday said it has decided to rollover a $50 million (around Rs 415 crore) payment due from Maldives, by allowing an additional year to the island country to re-pay the sum.

In a press release, the Indian High Commission in Maldives said, “At the request of the Government of Maldives, the State Bank of India has subscribed the $50 million Government Treasury Bill issued by the Ministry of Finance of Maldives.”

This will be for a period of one more year from the date of maturity of the previous subscription that is today — September 19. The SBI bought the Treasury Bill under an agreement signed by the previous government.

The Maldives had requested the Indian government to extend the deadline for repayment of $150 million. India agreed to rollover $50 million in May and a second $50 million payment was due on Thursday.

India’s relationship with the Maldives came under strain after President Mohamed Muizzu, known for his pro-China leanings, took charge as the President of the island nation. Within hours of his oath, he had demanded the withdrawal of Indian military personnel manning three aviation platforms gifted by India to the Maldives. After talks between the two sides, the Indian military personnel were replaced by civilians.