Male: India has approved the first withdrawal of Rs 30 billion under its continuing economic and financial assistance to Maldives, according to the Indian High Commission here.

The funds are being released under the first drawdown of the SAARC Currency Swap Framework, the Indian mission said in a statement on Thursday.

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

The earlier USD 400 million withdrawal, availed by Maldives under this framework in October 2024, matured on Thursday, the Indian High Commission said.

Maldives issues statement

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

“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.

India’s emergency financial assistance

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 Indian mission said.