‘Generous gesture’: India extends $50 million crucial budgetary support to Maldives

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.

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“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.

It is to be further noted that 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.

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The press release stated, “Earlier in May 2024, SBI had similarly subscribed a USD 50 mn T-bills under 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.”

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“India has assisted Maldives in times of need and the current subscription of T-bills along with 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,” it added.

Reacting to India's announcement, Maldives Foreign Minister Moosa Zameer has expressed gratitude to External Affairs Minister S Jaishankar and said that the Indian government's announcement demonstrates “enduring bonds of friendship between the Maldives and India.”

In a post on X, Zameer stated, “Sincere gratitude to External Affairs Minister @DrSJaishankar and the Government of #India for extending crucial budgetary support to the Maldives with the rollover of USD 50 million Treasury Bill. This generous gesture reflects the enduring bonds of friendship between #Maldives and #India.”

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India's relationship with the Maldives has faced challenges since President Mohamed Muizzu took office. Shortly after his inauguration, he demanded the removal of around 88 Indian military personnel stationed in the Maldives, leading to their repatriation from three aviation platforms by the May 10 deadline.

However, Muizzu's government has recently adopted a more conciliatory approach, attempting to mend ties following a diplomatic row in January, which arose after three Maldivian deputy ministers made derogatory remarks about Prime Minister Narendra Modi in connection with his visit to Lakshadweep.

Prime Minister Modi had envisioned developing the Indian island cluster as a beach tourism destination, which led to a significant diplomatic row after derogatory comments from three Maldivian deputy ministers regarding his Lakshadweep visit. This prompted New Delhi to summon the Maldivian envoy and lodge a strong protest, resulting in the suspension of the deputy ministers.

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Since January, the Muizzu-led government has made several efforts to restore relations, including high-level visits. Notably, President Muizzu attended Modi's swearing-in ceremony, and the Maldivian Foreign Minister also visited India.

In August, External Affairs Minister S. Jaishankar traveled to the Maldives, where he signed MoUs on capacity building and inaugurated six High Impact Community Development Projects (HICDPs).

During his visit to Male, Jaishankar met with President Muizzu and reviewed bilateral relations with Foreign Minister Moosa Zameer, conveying greetings from Prime Minister Modi.

(With inputs from ANI)