Finance Ministry: T-Bill wasn’t settled using public’s money deposited to banks

Finance Ministry has clarified that the USD 50 million Treasury Bill (T-bill) issued through the State Bank of India (SBI) in 2019 was settled using funds accumulated in the Sovereign Development Fund (SDF), and not public deposits held at the Bank of Maldives (BML).

The clarification follows the circulation of claims alleging that customer deposits at BML were used to repay the debt.

The Ministry categorically rejected the allegations as baseless, stating that the USD 50 million T-bill was repaid through advance planning using funds specifically allocated in the Sovereign Development Fund for such obligations.

The Ministry also noted that during a press conference held at the President’s Office on May 11 this year, President Dr. Mohamed Muizzu had already announced that the USD 50 million T-bill, which matured yesterday, would be fully settled on schedule.

The debt was incurred in 2019 during the administration of former president Ibrahim Mohamed Solih.

Despite the significant repayment, the Finance Ministry stood at approximately USD 644 million at the end of August. The government therefore dismissed claims that the debt repayment would affect the importation of essential commodities as unfounded.

The Ministry’s clarification comes following remarks by former President Mohamed Nasheed last night, in which he said that the repayment of USD 50 million to India had placed considerable pressure on the country’s reserves.