BML denies involvement in government’s USD 50 million SBI repayment

Bank of Maldives (BML) has rejected claims that it financed or provided US dollar liquidity for the government’s final USD 50 million repayment under a Treasury Bill facility with the State Bank of India (SBI).

In a statement, the bank said there was no connection between the repayment and BML’s financial position or banking operations.

The Ministry of Finance and Public Enterprises previously said the payment, made on September 17, was funded through the Sovereign Development Fund.

The repayment completed the settlement of a USD 150 million Treasury Bill facility obtained by the government in 2019. Two earlier repayments of USD 50 million each had already been made.

BML stressed that customer deposits, the bank’s own resources and other BML funds were not used for the latest repayment.

The bank said it remained financially strong and continued to operate within its established risk appetite, regulatory requirements, and governance and risk-management frameworks.

According to BML, its liquidity, capital and overall financial position are continuously monitored through management, risk-management and board-governance processes.

“The Government’s repayment of its T-Bill obligation to SBI was a separate transaction and did not draw on BML’s financial resources or affect the Bank’s ability to meet its obligations to customers,” the statement said.

BML also urged public officials, political representatives and media organisations to verify information with the relevant institutions before making or publishing claims about the bank, its financial position or customer funds.

While acknowledging the importance of public scrutiny and informed discussion about the country’s financial system, BML warned that inaccurate or misleading claims could create unnecessary concern among customers, businesses and investors.

The bank said such statements could undermine public confidence in BML, the wider banking sector and the Maldivian economy.

BML added that it reserved the right to take appropriate action, including legal action, where it believed false, misleading or defamatory information had caused—or could potentially cause—material harm to the bank, its customers or shareholders.

The bank reiterated its commitment to transparent and factual public communication, saying it would continue to provide accurate information on matters concerning its operations.