India Extends USD 50 Million Budgetary Support To Maldives For Another Year

India has once again extended a helping hand to the Maldives, who are currently facing economic challenges. The Indian High Commission mentioned on Thursday, September 19, that the State Bank of India has decided to roll over USD 50 million Treasury Bill for an additional year. This development came up following a request by the Maldives government. The statement issued by the Indian High Commission read, “At the request of the Government of Maldives, the State Bank of India (SBI) has subscribed to the USD 50 million (approximately Rs 417 crore) Government Treasury Bill (T-bills) issued by the Ministry of Finance of Maldives, for a period of one more year from the date of maturity of the previous subscription, September 19, 2024.”

Treasury bills are short-term debt instruments that are often issued by governments to meet their short-term financial issues. Earlier, in May 2024, SBI subscribed to a similar USD 50 million Treasury bill following the request of the Maldivian government. This step was taken after the government requested emergency financial support.

According to reports, SBI subscribed USD 200 million (approximately Rs 1670 crore) in Treasury Bills, USD 50 million for each one. The government of Maldives earlier requested to extend the deadline for the repayment of the remaining USD 150 million (approximately Rs 1252 crore). India earlier agreed to rollover USD 50 million in May, while another USD 50 million payment was due yesterday.

Replying to India’s recent move, Maldives’ Foreign Minister Moosa Zameer posted on X (formerly Twitter), “Sincere gratitude to External Affairs Minister Dr S Jaishankar and the Government of India for extending crucial budgetary support to the Maldives with the rollover of the USD 50 million Treasury Bill. This generous gesture reflects the enduring bonds of friendship between Maldives and India.”

Foreign Minister Moosa Zameer is presently on his tour to Sri Lanka. Recently, the minister claimed that the financial issues the country is facing are temporary and there is no immediate need to seek help from the International Monetary Fund (IMF).