India extend $50 mn budgetary support to Maldives

Male: In a goodwill gesture, India has decided to extend vital budgetary support to the Maldives with the rollover of a USD 50 million Treasury Bill for another year at the Maldivian government's special request, it was announced on Monday.

The State Bank of India has subscribed for one more year to the USD 50 million Government Treasury Bill, issued by the Ministry of Finance of Maldives, upon maturity of the previous subscription, the High Commission of India said in a brief statement on Monday.

The Indian government took this decision despite the bilateral ties experiencing turbulence since Maldives President Mohamed Muizzu, a pro-China leader, assumed office six months back.

These Government Treasury Bills are subscribed by SBI under government-to-government, a unique arrangement at zero cost (interest-free) to the Government of Maldives.

The continuation of subscription has been made at the special request of the Government of Maldives to secure budgetary support from the Government of India, the statement said.

Under the terms of special government-to-government arrangement, SBI has been subscribing to these government treasury bills at zero cost to the Maldives government. This means the Maldives incurs no interest expense on the borrowed amount, the Edition.mv news portal reported.

The first treasury bill, valued at USD 50 million, matured in January 2024, which the Maldives had repaid. The second treasury bill, also valued at USD 50 million, is set to mature in May 2024. In response to a special request from the Maldives, SBI has opted to extend its subscription for another year.

The third treasury bill is due to mature in September, the report said.

The Maldivian government on Monday thanked India for its support. "I thank EAM @DrSJaishankar and the Government of #India for extending vital budgetary support to the Maldives with the rollover of USD 50 million Treasury Bill. This is a true gesture of goodwill which signifies the longstanding friendship between #Maldives and #India," Foreign Minister Moosa Zameer

tweeted.

The Government of India has provided budget support of USD 50 million to the Maldives. The support was in the form of a rollover of USD 50 million Treasury Bill, for an additional year, through the State Bank of India, Male’, from May 13, 2024, the Maldivian Foreign Ministry said in a statement.

"Government of India’s decision to rollover the T-Bill came following a request to that effect made by Foreign Minister Moosa Zameer to India’s External Affairs Minister Dr S Jaishankar, during the official bilateral visit to India from May 8-10, the statement said.