India on Thursday said it has rolled over, for one more year, USD 50 million Maldives’ Government bonds as “an emergency financial assistance” to the archipelagic nation.
The deadline for the repayment of a USD 50 million Treasury Bill (T-bill) was extended once again “on the request of the Maldives Government.”
“Since March 2019, the Government of India has been facilitating subscription of several such Treasury Bills by the State Bank of India and rolling them over, annually, interest-free to the Government of Maldives,” the Indian High Commission said in a statement here.
“On the request of the Government of Maldives, the State Bank of India has subscribed, for one more year, a USD 50 million Government Treasury Bill issued by the Ministry of Finance of Maldives,” the statement said.
“This has been done under a unique Government-to-Government arrangement, as an emergency financial assistance to Maldives,” the statement, posted on the High Commission’s X account, said.
“This latest engagement builds on a series of diplomatic overtures aimed at strengthening the economic partnership,” Maldives’ state-run Public Service Media (PSM News) said.
It follows a state visit by Prime Minister Narendra Modi, during which negotiations were held on a prospective free trade agreement and several financial accords were signed, the PSM News said.
Maldives is India’s key maritime neighbour and an important partner in India’s ‘Neighbourhood First’ policy and Vision ‘MAHASAGAR’ i.e. Mutual and Holistic Advancement for Security and Growth Across Regions.
India has assisted Maldives in times of need and the subscription of this Treasury Bill, along with the Government of India’s decision earlier this year to extend the special quota for export of essential commodities for Maldives and re-subscription of another T-bill, reflect India’s continued support to the Government and the people of the Maldives, the Indian mission added.
Maldives’ Finance Minister Moosa Zameer met with G Balasubramanian, the High Commissioner of India to the Maldives, and Suja K Menon, Joint Secretary, and senior officials of the Ministry of External Affairs (MEA) on Wednesday at the Finance Ministry here.
“Central to the discussions was the Treasury bill subscribed by the State Bank of India, originally scheduled for repayment on September 18. The extension, according to the Finance Ministry, reflects India’s ‘continued confidence and assistance’ and underscores the depth of financial collaboration between the two nations,” the PSM News said.
Trade relations featured prominently in the dialogue, with both sides expressing a shared interest in expanding commercial ties and increasing the volume of bilateral transactions, it said, adding, the shared objective “is to identify new avenues for economic collaboration that align with national priorities.”
The Finance Ministry also said that Wednesday’s meeting featured discussions about the development project portfolio which will be financed under the Line of Credit (LOC) extended by the Indian Government.
“Key challenges faced in implementation were shared, as well as paths to successful completion of said projects,” news portal Edition.mv said.
“In addition to deferring repayment of the USD 100 million issued as budget support, a USD 750 million currency swap facility was extended to Maldives. USD 400 million of this is being used by the Government. The government is also in discussion with India’s central bank, Reserve Bank of India, to take the remaining INR 30 billion swap facility,” it added.
Zameer called the meeting as “productive” and said, in a post on X, “We reviewed progress of India’s LOC-financed projects, addressed key challenges, and explored ways to strengthen Maldives-India trade ties.”
