India extends financial support to Maldives via rollover of USD 50 million Treasury Bill

Male, May 12: The Government of India has extended support to India's maritime neighbour, Maldives by rolling over the USD 50 Million treasury bill, the High Commission of India to Maldives said in a statement on Monday. Foreign Minister of Maldives, Abdulla Khaleel expressed gratitude to the Indian government and hailed the timely assistance which "reflects the close bonds of friendship" between the two countries.

In the statement shared on X, the High Commision of India to Maldives said, "India extends financial support to the Maldives through the rollover of the USD 50 million Treasury Bill.

https://x.com/HCIMaldives/status/1921792256383582686

According to the statement, after the request by the Government of Maldives, the State Bank of India (SBI) to has subscribed, for one more year, a USD 50 million Government Treasury Bill issued by the Ministry of Finance of Maldives.

It was noted that since March 2019, India has been facilitating subscription of several such Treasury Bills by the SBI and rolling them over, annually, interest-free to the Government of Maldives.

This is a part of the unique government to government arrangement between the two countries that serves as an emergency financial assistance to the maritime neighbour.

The statement also mentioned that India has assisted Maldives in times of need and the subscription of this Treasury Bill, along with, the Government of India's decision earlier this year to extend the special quota for export of essential commodities for Maldives, which reflects India's continued support to the Government and the people of the Maldives.

The letter mentioned, "On the request of Government of Maldives, the State Bank of India (SBI) has subscribed, for one more year, a USD 50 million Government Treasury Bill issued by the Ministry of Finance of Maldives. Since March 2019, Government of India has been facilitating subscription of several such Treasury Bills by the SBI and rolling them over, annually, interest-free to the Government of Maldives.

This has been done under a unique Government- to-Government arrangement, as emergency financial assistance to Maldives.

Maldives is India's key maritime neighbour and an important partner in India's 'Neighbourhood First' policy and Vision 'MAHASAGAR' i.e. Mutual and Holistic Advancement for Security and Growth Across Regions. India has assisted Maldives in times of need and the subscription of this Treasury Bill, along with, the Government of India's decision earlier this year to extend the special quota for export of essential commodities for Maldives, reflect India's continued support to the Government and the people of the Maldives."

Extending gratitude to the Government of India, the Foreign Minister of Maldives said, "I express my sincere gratitude to EAM @DrSJaishankar and the Government of #India for extending crucial financial support to the #Maldives through the rollover of the USD 50 million Treasury Bill. This timely assistance reflects the close bonds of friendship between #Maldives & #India and will support the Government's ongoing efforts to implement fiscal reforms for economic resilience."

https://x.com/abkhaleel/status/1921776171634884829

India and Maldives are longstanding partners.

During the visit of Maldives' President Mohamed Muizzu to India last year, Prime Minister Modi had underscored the importance attached by India to its relationship with Maldives under its 'Neighbourhood First' Policy and Vision SAGAR, and reaffirmed India's unwavering commitment to assist Maldives on its developmental journey and priorities.

Reader Comments

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Rajesh K.

This is a wise move by our government. Maldives is strategically important for India's maritime security. Helping our neighbors in need strengthens regional stability. Hope they remember this goodwill when China comes knocking with their debt-trap diplomacy! 🇮🇳🤝

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Priya M.

While I appreciate India's generosity, I hope our government is keeping track of how much financial aid we're giving to Maldives. We have our own development needs too. The interest-free part concerns me - at least nominal interest would make it more sustainable long-term.

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Amit S.

Great to see Neighbourhood First policy in action! Maldives is like our younger sibling in the Indian Ocean. When we help them, we're actually securing our own backyard. More power to such diplomatic moves that build trust rather than creating dependencies like some other countries do.

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Sunita R.

As someone who visited Maldives last year, I can say their people genuinely appreciate India's help. The shopkeepers in Male still remember how India sent vaccines during COVID. This financial support will only strengthen those people-to-people bonds. Tourism between our countries should increase too!

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Vikram J.

Hope this assistance comes with some accountability measures. We've seen how some countries take our help and then make anti-India statements later. The Maldivian government must ensure this money benefits their citizens directly, not just the political elite.

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Neha P.

This is why India is respected globally - we help without strings attached! The Maldivian Foreign Minister's gratitude shows our diplomacy is working. Small gestures like this create big impacts in international relations. Proud of our foreign policy team 👏

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