The Indian government has extended financial support to the Maldives through the rollover of the USD 50 million Treasury Bill for one more year, which the Maldivian administration said will help in its ongoing efforts to implement fiscal reforms for economic resilience.

In a statement, the Indian High Commission to the Maldives wrote: "On the request of Government of Maldives, the State Bank of India has subscribed, for one more year, a USD 50 million Treasury Bill issued by the Ministry of Finance Maldives."

"Since March 2019, the Indian government has been facilitating subscription of several such Treasury Bills by the SBI and rolling them over, annually, interest-free to the Government of Maldives," the statement said.

"This has been done under a unique Government-to-Government arrangement, as emergency financial assistance to the Maldives," the statement said.

India-Maldives Bond

India and Maldives share ethnic, linguistic, cultural, religious and commercial links steeped in antiquity.

India was among the first to recognize Maldives after its independence in 1965 and to establish diplomatic relations with the country.

As per the Indian Embassy in the Maldives website, the country occupies a special place under “Neighbourhood First” Foreign Policy of India, which aims to bring stability and prosperity in the Indian Ocean Region (IOR).

Both nations are key players in maintaining the safety and security of the IOR, thus contributing to India-led Security And Growth for All in the Region (SAGAR) vision.

Maldive's Reaction

Abdulla Khaleel, the Maldives' Minister of Foreign Affairs, expressed gratitude to the Indian leadership for the financial support extended to his nation.

Khaleel wrote on X: "I express my sincere gratitude to EAM @DrSJaishankar and the Government of #India for extending crucial financial support to the #Maldives through the rollover of the USD 50 million Treasury Bill." 

"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 said.