With the rollover of the USD 50 million Treasury Bill, the Indian government gave fiscal help to the Maldives, for which Maldives Foreign Minister Moosa Zameer expressed gratitude to External Affairs Minister S Jaishankar.
Maldives get financial aid from India worth USD 50 million in times of economic distress
According to him, the declaration made by the Indian government shows “enduring bonds of friendship between the Maldives and India.”
“Deep gratitude to External Affairs Minister @DrSJaishankar and the Government of #India for providing essential budgetary support to the Maldives with the rollover of USD 50 million Treasury Bill. This kind act illustrates the strong friendship that is shared by the Maldives and India,” Mr. Zameer (Foreign Minister of Maldives) wrote in a post on X.
State Bank of India purchased T-bills issued by ‘Maldives finance ministry’ to provide financial aid to Maldives
The Indian High Commission in the Maldives said in a press release that the State Bank of India (SBI), at the request of the Maldivian government, has subscribed the USD 50 million government Treasury Bills (T-bills) issued by the Maldives Ministry of Finance for a period of one more year following the maturity of the previous subscription on September 19.
After the initial rollover of a USD 50 million Treasury Bill on May 13, this is the second rollover approved by the Indian government this year.
As per the press release, the Maldivian government is “highly appreciative” of the support announced by India following the request made by Moosa Zameer during his August meeting with Mr. Jaishankar.
Maldives extended its gratitude towards India
In a statement, the Maldives Ministry of Foreign Affairs said, “Government of India’s decision to grant this extension came following a request to that effect made by Foreign Minister Moosa Zameer during the discussions held between the two governments at the recent visit of the Minister of External Affairs of India, S Jaishankar, to the Maldives from 9-11 August 2024.”
“The significant financial help that the Indian government has been giving to the Maldives is greatly appreciated by the Maldivian government. The Maldives government is putting in place a robust fiscal consolidation program to address the urgent economic issues, thus this extension comes at a critical time,” the statement continued.
The Ministry of Foreign Affairs of the Maldives stated that India has once again demonstrated how much importance it placed on the long-term friendship between the two countries.
“The Government of India has once again demonstrated the high value it places on this enduring partnership. The Maldivian government is eager to carry on this cooperative relationship for the progress and mutual advantage of the people in both countries,” the statement said.
India’s ‘Neighborhood first’ policy
“Maldives is India’s key maritime neighbor and an important partner under India’s ‘Neighborhood First’ policy and Vision SAGAR i.e. Security and Growth for All in the Region,” said the Indian High Commission in the Maldives.
“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, of extending special quota for export of essential commodities for Maldives by one more year reflect India’s continued support to the Government and the people of the Maldives,” said the statement.
It noted that SBI had similarly subscribed a USD 50 Mn T-bills under the same mechanism in May 2024, at the request of the Maldives government. These subscriptions have been made at the special request of the Maldives government as emergency financial assistance.
Additional information
Following the election of Maldives President Mohamed Muizzu, India’s relations with the Maldives became strained. Mr. Muizzu incited tensions between the two countries soon after taking office by insisting that about 88 Indian military personnel be removed from the Maldives.
Relations between the two countries deteriorated after three Maldivian deputy ministers made disparaging remarks about Prime Minister Narendra Modi regarding his photos from the trip to Lakshadweep.
The Muizzu-led government has been working hard since January to restore the relationship, and part of that effort has been a number of high-level trips, with the President himself traveling to India for PM Modi’s swearing-in ceremony or the visit of the Maldivian Foreign Minister.
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