BML says $50 million SBI repayment did not use bank or customer funds
Bank of Maldives (BML) has said the government’s repayment of the final USD 50 million of a USD 150 million Treasury bill facility through the State Bank of India (SBI) did not involve BML customer deposits or the bank’s own funds and had no impact on its financial position.
The USD 150 million facility was extended as budget support through SBI during former President Ibrahim Mohamed Solih’s administration. Its repayment was deferred several times by India.
The first USD 50 million was repaid in 2024, followed by another USD 50 million in May this year. The government settled the remaining USD 50 million on Thursday, completing repayment of the facility.
In a statement issued on Saturday, BML said the government’s repayment of the SBI Treasury bill was unrelated to the bank’s financial position or banking operations.
BML said the Ministry of Finance and Public Enterprises had confirmed that the USD 50 million payment was arranged through the Sovereign Development Fund (SDF).
“BML did not fund this repayment from customer deposits, its own resources, or any other BML funds,” the bank said.
BML said it remained financially sound and operated within established risk appetite levels, regulatory requirements and governance and risk management frameworks.
The bank said its liquidity, capital and overall financial position were continuously monitored by its management and board.
It added that the government’s repayment to SBI was a transaction conducted independently of BML and had no impact on the bank’s financial resources or its ability to meet obligations to customers.
BML said it recognised the importance of public discussion and scrutiny of issues relating to the country’s financial system, but said claims about a bank’s financial position should be based on verified facts because of their potential impact on customer confidence, shareholder interests and the stability of the financial system.
“The repeated circulation of incorrect or misleading claims can create unnecessary concern among customers, businesses and investors and can undermine confidence in the Bank, the broader banking sector and the Maldivian economy,” BML said.
The bank urged all parties, particularly politicians and media organisations, to verify information relating to BML’s financial position and customer funds with the relevant state authorities before making or publishing claims.
BML said protecting the interests of its customers and shareholders remained a priority and that it reserved the right to take legal action against parties that spread false information intended to damage the bank or cause it losses.
It added that it remained financially sound and committed to protecting the interests of its customers and supporting the Maldivian economy.
