India rolls over $50 million support for Maldives amid debt crisis

India said on Monday it has extended financial support to the Maldives by rolling over New Delhi's subscription to a $50 million treasury bill by another year at the request of the archipelago's government.

The State Bank of India has extended the subscription to the bill issued by the Maldives' finance ministry, India's high commission there said in a statement on its X account.

Maldives' Foreign Minister Abdulla Khaleel thanked the Indian government for extending "crucial financial support".

"This timely assistance reflects the close bonds of friendship between Maldives and India and will support the Government's ongoing efforts to implement fiscal reforms for economic resilience," he said on X.

China and India remain the Maldives' biggest creditor nations and both regional rivals vie for influence in the strategically located Indian Ocean nation, whose economy has struggled with low foreign exchange reserves and substantial external debt, sparking fears of a default.

According to World Bank data, the country's total public and publicly guaranteed debt rose to $9.4 billion - or more than 134% of GDP - in the last quarter of 2024, a more than $1 billion uptick year-on-year.

"The credit rating downgrades by Fitch and Moody's in the second half of 2024 have further constrained the country's ability to access markets for new financing," the World Bank said in a report on the Maldives, warning that the country's debt servicing in 2025 and 2026 will see a spike.