Export-Import Bank of India (Exim Bank) has formalized a ₹4,850 crore Line of Credit (LOC) to the Government of Maldives, supported by the Government of India, to finance developmental infrastructure projects.
Exim Bank Finalizes ₹4,850 Crore LOC for Maldives Development
The Export-Import Bank of India (Exim Bank) has entered into an agreement dated July 25, 2025, with the Government of the Republic of Maldives to provide a Government of India (GOI)-supported Line of Credit (LOC) of ₹4,850 crore. The arrangement, notified by the RBI on September 23, 2026, through A.P. (DIR Series) Circular No. 22, is intended to finance various developmental projects in Maldives, including infrastructure, energy, and public utilities.
The LOC is part of India’s broader economic diplomacy and development cooperation framework with neighbouring countries. It enables Maldivian authorities to procure goods and services from Indian suppliers, thereby promoting Indian exports and strengthening bilateral economic ties. The financing mechanism aligns with RBI’s guidelines on external commercial borrowings and lines of credit extended by Exim Bank.
For practitioners, this LOC presents opportunities in project financing, export compliance, and cross-border contract structuring. Clients involved in export of capital goods or infrastructure consultancy should assess eligibility under the financing framework. The circular also reminds Authorised Dealer Category-I banks of their role in facilitating such transactions under the Foreign Trade Policy.
Citations
- A.P. (DIR Series) Circular No. 22, RBI/2026-2027/269