Maldives government thanks India for extending budgetary support

With the rollover of a USD 50 million Treasury Bill for another year at the Maldivian government’s request, India has chosen to provide the Maldives government with critical budgetary help as a goodwill gesture, it was revealed on Monday.

Following the previous subscription’s maturity, the State Bank of India renewed its subscription for an additional year to the USD 50 million Government Treasury Bill issued by the Maldives Ministry of Finance, the High Commission of India announced in a brief statement on Monday.

The decision was made by the Indian government in spite of the tumultuous bilateral ties that have existed since pro-China Maldives President Mohamed Muizzu entered office six months ago.

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SBI subscribes to these Government Treasury Bills on a government-to-government basis, providing the Maldives government with a special arrangement at no cost (interest-free).

According to the statement, the Maldives government submitted a specific request to continue subscription in order to obtain budgetary support from the Indian government.

On Monday, the Maldivian government expressed gratitude to India for its support.

“I thank EAM Dr S Jaishankar and the Government of India for extending vital budgetary support to the Maldives with the rollover of USD 50 million Treasury Bill. This is a true gesture of goodwill which signifies the longstanding friendship between Maldives and India,” Foreign Minister Moosa Zameer tweeted.

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The Government of India has provided budget support of USD 50 million to the Maldives. The support was in the form of a rollover of USD 50 million Treasury Bill, for an additional year, through the State Bank of India, Male’, from May 13, 2024, the Maldivian Foreign Ministry said in a statement.

“Government of India’s decision to rollover the T-Bill came following a request to that effect made by Foreign Minister Moosa Zameer to India’s External Affairs Minister Dr S Jaishankar, during the official bilateral visit to India from May 8-10, the statement said.

The Government of Maldives is highly appreciative of the generous support that the Government of India has been providing to the Maldives in the form of budgetary support. A large number of infrastructural developmental projects and High Impact Community Developmental projects are underway with assistance from the Government of India, which consists of a notable part as grant assistance, the statement said.

The Government of Maldives looks forward to continuing this collaborative partnership for the mutual benefit and prosperity of their people, it said.

Zameer after coming back from the visit said that significant strides have been made in expediting India-assisted projects in the Maldives, as he underscored the government’s commitment to prioritising the resumption and completion of these projects.

It comes amid a downturn in the bilateral ties between the two countries since President Muizzu assumed office in November and immediately asked India to withdraw some 89 Indian military personnel from the country by May 10. The Indian military personnel were operating three aviation platforms in the island nation.

Zameer on Saturday said 76 Indian military personnel were replaced by civilian employees of the Hindustan Aeronautics Limited which manufactured the two helicopters gifted by India, thus also ending the suspense over the exact number of those repatriated at the insistence of Male.

However, the Maldives government has no intention of removing the doctors from India at Senahiya.

(With agency inputs)