India Extends Financial Support to Maldives with USD 50 Million Treasury Bill Rollover

India has once again extended its financial support to the Maldives by rolling over a USD 50 million Treasury Bill for another year. This decision was made following a request from the Maldivian government and confirmed by the Indian High Commission in the Maldives.

Rollover Details

The State Bank of India (SBI) has renewed its subscription to the USD 50 million Treasury Bills issued by the Maldivian Ministry of Finance, following the maturity of the previous subscription on September 19. This marks the second such rollover in 2024, with the first taking place in May.

In a statement, the High Commission highlighted that the earlier subscription in May 2024 had been provided under similar circumstances. Both subscriptions were made at the special request of the Maldivian government as emergency financial assistance.

Strengthening a Strategic Partnership

India has reaffirmed its commitment to the Maldives as an important maritime neighbor under its 'Neighbourhood First' policy and Vision SAGAR (Security and Growth for All in the Region). The rollover of the Treasury Bill is seen as part of India's ongoing support for the Maldivian government and its people.

Positive Response from the Maldives

Former Maldivian Foreign Minister Abdulla Shahid expressed his appreciation for India's continued assistance, calling the nation a "time-tested friend" and "unwavering ally." In a post, he shared his gratitude, stating, "Delighted to hear that India has subscribed to the USD 50 million T-Bills issued by the Government of Maldives for one more year, as emergency financial assistance."

Diplomatic Challenges and Renewed Relations

Despite recent strains in the relationship between India and the Maldives, particularly after President Mohamed Muizzu took office, diplomatic efforts to restore ties have been ongoing. Earlier this year, the Maldives requested the withdrawal of Indian military personnel, which led to tensions. However, Muizzu's administration has since shifted towards a more reconciliatory stance, focusing on mending diplomatic relations.

High-level engagements have marked the renewed efforts to improve ties, including President Muizzu’s attendance at Prime Minister Narendra Modi’s swearing-in ceremony and External Affairs Minister S. Jaishankar’s visit to the Maldives in August. During Jaishankar's visit, memorandums of understanding were signed, and six High Impact Community Development Projects (HICDPs) were inaugurated, further strengthening bilateral cooperation.

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