Bank of Maldives denies involvement in SBI debt repayment

The Bank of Maldives (BML) and the Ministry of Finance have clarified that the government’s final USD 50 million repayment to the State Bank of India (SBI) did not involve the use of BML customer deposits.

The payment, completed on September 17, 2024, was the final installment of a USD 150 million Treasury Bill facility obtained in 2019. Both institutions confirmed that the funds were sourced from the Sovereign Development Fund (SDF), which was established to manage sovereign debt and reduce refinancing risks.

BML denied allegations that its financial position was affected by the transaction, asserting that the bank remains strong and operates within regulatory standards. The bank warned that spreading misinformation regarding the financial system could undermine economic confidence and stated it reserves the right to take legal action against defamatory claims.