India extends USD 50 million budgetary support to Maldives for another year

Male: India has extended budgetary support to the Maldives government in the form of a rollover of the USD 50 million Treasury Bill for another year on the Maldivian government’s request, the Indian High Commission in the Maldives announced on Thursday.

At the request of the Maldivian government, the State Bank of India (SBI) has subscribed the USD 50 million government Treasury Bills (T-bills) issued by the Ministry of Finance of the Maldives for a period of one more year upon the maturity of the previous subscription on September 19, the Indian High Commission in the Maldives said in a press release.

This is the second rollover granted by the Indian government this year, following the first rollover of a USD 50 million Treasury Bill in May.

The press release stated, “Earlier in May 2024, SBI had similarly subscribed a USD 50 mn T-bills under the same mechanism, again on the request of the Government of Maldives. These subscriptions have been made at the special request of the Government of Maldives as emergency financial assistance.”

In the press release, the Indian High Commission called the Maldives India’s key maritime neighbour and important partner under India’s ‘Neighbourhood First’ policy.

The Indian High Commission in Maldives stated, “Maldives is India’s key maritime neighbour and an important partner under India’s ‘Neighbourhood First’ policy and Vision SAGAR i.e. Security and Growth for All in the Region.”

“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 special quota for the export of essential commodities for the Maldives by one more year reflect India’s continued support to the Government and the people of the Maldives,” it added.

Reacting to India’s announcement, Maldives former Foreign Minister Abdulla Shahid expressed happiness over New Delhi’s decision to extend budgetary support to Male. Calling India Maldia ves “time-tested friend” and “unwavering ally,” he expressed gratitude to India for its special consideration extended towards the people of his country.

In a post on X, Abdulla Shahid stated, “Delighted to hear that India has subscribed the USD 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.”

Delighted to hear that India has subscribed 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… https://t.co/sMYjert2lB

— Abdulla Shahid (@abdulla_shahid) September 19, 2024

India’s ties with the Maldives were strained after Maldives President Mohamed Muizzu took office. Shortly after he was sworn in, Muizzu stirred bilateral tensions by demanding 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 May 10 deadline set by President Muizzu.

Recently, Muizzu’s government in the Maldives took a reconciliatory tone after ties between the two nations soured, leading to a diplomatic row in January after three Maldivian deputy ministers made derogatory comments against Prime Minister Narendra Modi over his pictures from the visit to Lakshadweep.

PM Modi had called for the Indian island cluster to be developed as a destination for beach tourism and promotion of domestic tourism. The matter snowballed into a major diplomatic row, with New Delhi summoning the Maldivian envoy and registering a strong protest against the viral posts. Later, the three deputy ministers were suspended.

Since January, many efforts have been undertaken by the Muizzu-led government to restore the relationship, which includes several high-level visits, including the President himself coming to India for the swearing-in ceremony of Prime Minister Narendra Modi or the visit of the Maldivian Foreign Minister.

Earlier in August, External Affairs Minister S Jaishankar visited Maldives. During his visit to Male, Jaishankar signed MoUs on capacity building and inaugurated six High Impact Community Development Projects (HICDPs), according to a Ministry of External Affairs (MEA) release.

Jaishankar also called on Maldivian President Mohamed Muizzu and reviewed bilateral relations with Foreign Minister Moosa Zameer, the statement added. During his meeting with Muizzu, he extended greetings from Prime Minister Narendra Modi.