In a significant move reflecting the close bilateral ties between India and the Maldives, the Government of India has extended crucial financial support to the island nation by rolling over a USD 50 million Treasury Bill for another year.
The assistance has been given under a novel Government-to-Government arrangement in effect since 2019. This support will be used by the Maldives to stabilise the economy and put in place fiscal reforms to ensure economic resilience.
According to a press release by the High Commission of India in the Maldives, India has facilitated the annual subscription and rollover of similar Treasury Bills since March 2019, under an exclusive emergency financial assistance framework. “This has been done under a unique Government-to-Government arrangement,” the statement noted. “Maldives is India’s key maritime neighbour and an important partner in India’s ‘Neighbourhood First’ policy and Vision ‘MAHASAGAR’ – Mutual and Holistic Advancement for Security and Growth Across Regions.” The High Commission also highlighted that India’s assistance to the Maldives extends beyond the economy, referring to the grant of a special export quota of critical commodities to the country earlier this year.
Maldivian Foreign Affairs Minister Abdulla Khaleel expressed his gratitude on social media for India’s help. “I express my sincere gratitude to EAM Dr. S. Jaishankar and the Government of India for extending crucial financial support to the Maldives through the rollover of the USD 50 million Treasury Bill,” he posted on X (formerly Twitter).
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“This timely assistance reflects the close bonds of friendship between Maldives & India and will support the Government’s ongoing efforts to implement fiscal reforms for economic resilience,” he added.
This follows only a few days ago when Maldives Defence Minister Mohamed Ghassan Maumoon said agreements made with India in the past were being revised or had already been revised to “ensure that they safeguard the sovereignty and independence of Maldives.” Despite such political statements, India’s ongoing economic aid solidifies its strategic commitment to maintaining support for the Maldives via developmental and financial cooperation.