India extends $50m budgetary support to Maldives for another year

MALE, MALDIVES: India has extended budgetary support to the Maldives by rolling over a $50 million Treasury Bill for another year at the request of the Maldivian government, the Indian High Commission in the Maldives announced on Thursday.

The State Bank of India (SBI) has subscribed to the $50 million Treasury Bills (T-bills) issued by the Maldivian Ministry of Finance for an additional year, following the maturity of the previous subscription on 19 September, according to the Indian High Commission.

This marks the second rollover granted by India this year, following a similar $50 million Treasury Bill rollover in May.

The press release stated, "Earlier in May 2024, SBI had similarly subscribed to $50 million T-bills under the same mechanism, again at the request of the Government of Maldives. These subscriptions have been made as emergency financial assistance."

The Indian High Commission described the Maldives as India's key maritime neighbour and an important partner under India's 'Neighbourhood First' policy.

"Maldives is India's key maritime neighbour and an important partner under India's 'Neighbourhood First' policy and Vision SAGAR — Security and Growth for All in the Region," the statement read.

"India has assisted the Maldives in times of need, and the current subscription of T-bills, along with the Government of India's decision earlier this year to extend the special quota for the export of essential commodities to the Maldives by one more year, reflects India's continued support to the Government and the people of the Maldives," it added.

Reacting to India's announcement, former Maldivian Foreign Minister Abdulla Shahid expressed his gratitude, calling India a "time-tested friend" and "unwavering ally."

In a post on X, Shahid stated, "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 time again that it is a time-tested friend and an unwavering ally, despite this government's mismanagement of the economy and its questionable foreign policy. I thank India for its special consideration extended towards the people of Maldives. Friendly, cordial relationships with all countries are essential for progress and prosperity."

India's relations with the Maldives have been strained since President Mohamed Muizzu took office. Shortly after his inauguration, Muizzu demanded the removal of approximately 88 Indian military personnel from the Maldives. These personnel were repatriated from three aviation platforms and replaced by Indian civilians by the 10 May deadline set by President Muizzu.

By RSS/ANI