Former President and MDP Chairperson Mohamed Nasheed has warned that the Maldives must repay India USD 50 million (MVR 772 million) by the end of today, and that settling the debt will cause the country’s usable reserves to fall sharply.

In a post on X earlier today, Nasheed said that from tomorrow onwards, the Maldives Monetary Authority’s usable reserves are expected to weaken significantly, leaving insufficient foreign currency to import essentials such as staple foods, fuel and medical supplies.

The USD 50 million in question is the final outstanding portion of a USD 200 million budget support package extended to the Maldives by India during the administration of former President Ibrahim Mohamed Solih. Issued in the form of Treasury Bills, the repayment had previously been deferred by India on several occasions. After the government repaid USD 50 million this past May, the remaining USD 50 million is now due tomorrow, 17 September.

It is understood that although the government has requested a further extension on the outstanding USD 50 million, India has yet to respond to the request.