Government denies $50m T-bill repayment used BML public deposits

The Ministry of Finance and Public Enterprises has rejected claims that public funds deposited with the Bank of Maldives (BML) were used to settle the final USD 50 million instalment of a Treasury bill facility obtained through the State Bank of India (SBI), stating that the repayment was made from funds accumulated in the Sovereign Development Fund (SDF).

The ministry said the allegations were “baseless and unfounded,” clarifying that the government had planned for the repayment in advance and had systematically allocated funds to the SDF for debt obligations.

The final USD 50 million payment was made on September 17, 2026, fully clearing the USD 150 million T-bill facility obtained through SBI in 2019 during the administration of former President Ibrahim Mohamed Solih. The facility was originally secured to provide budgetary support.

According to the Ministry of Finance, the USD 150 million facility was repaid in three USD 50 million instalments. The first payment was made in January 2024, followed by a second payment on May 11, 2026, with the remaining USD 50 million settled on September 17 this year.

The ministry said the repayment strategy was supported by regular transfers to the SDF, which was established as a mechanism to strengthen the government’s capacity to meet major debt obligations and reduce repayment risks. The fund has historically been used to set aside resources for significant sovereign debt repayments.

President Dr. Mohamed Muizzu had previously announced the repayment plan during a press conference at the President’s Office on May 11, 2026, stating that the USD 50 million T-bill due on September 17, 2026, would be settled in full on its due date.

The latest repayment completes the settlement of the entire USD 150 million facility. The Ministry of Finance said the government had made arrangements to ensure that the repayment would not disrupt the availability of foreign exchange for essential imports.

The ministry has also pointed to the country’s official reserve position, which stood at approximately USD 644 million at the end of August 2026, while rejecting claims that the debt repayment would prevent the continued importation of essential commodities, including food, fuel and medicines.

The clarification comes amid renewed public discussion over the government’s foreign exchange position and the impact of large debt repayments on the country’s reserves.