India has extended its budgetary support to the Maldives by rolling over a $50 million Treasury Bill for an additional year, responding to a request from the Maldivian government. The Indian High Commission in the Maldives announced this extension on Thursday, facilitated by the State Bank of India (SBI).
The SBI has subscribed to the $50 million Treasury Bills (T-bills) issued by the Maldives’ Ministry of Finance following the maturity of the previous subscription on September 19. This marks the second rollover of budgetary aid by India this year, with the first subscription occurring in May.
In a statement, the Indian High Commission noted, “Earlier in May 2024, SBI had similarly subscribed to a $50 million T-bill under the same mechanism, again at the request of the Government of Maldives. These subscriptions have been made as emergency financial assistance.”
The High Commission emphasized the importance of the Maldives in India’s regional strategy, highlighting that “Maldives is India’s key maritime neighbor and an important partner under India’s ‘Neighbourhood First’ policy and Vision SAGAR, which stands for Security and Growth for All in the Region.”
Additionally, India has extended a special quota for the export of essential commodities to the Maldives for another year, reflecting its ongoing support for the Maldivian government and its people.
Former Maldivian Foreign Minister Abdulla Shahid welcomed India’s support, describing the nation as a “time-tested friend” and “unwavering ally.” He stated, “I am delighted to hear that India has subscribed to the $50 million T-Bills issued by the Government of Maldives for one more year as emergency financial assistance. India continues to prove time and again that it is a steadfast ally, despite the current government’s economic mismanagement and questionable foreign policy. I thank India for its special consideration towards the people of Maldives.”
Relations between India and the Maldives have faced challenges since President Mohamed Muizzu took office, particularly after his calls for the removal of Indian military personnel. This led to diplomatic tensions in January when derogatory remarks about Indian Prime Minister Narendra Modi were made by Maldivian deputy ministers. Despite these strains, efforts have been made to improve bilateral ties, including several high-level visits.
In August, External Affairs Minister S. Jaishankar visited the Maldives, where he signed agreements on capacity building and inaugurated six High Impact Community Development Projects (HICDPs). He also met with President Muizzu and reviewed bilateral relations with Foreign Minister Moosa Zameer.
