What happened?
The Indian government has provided financial support to Maldives by rolling over a $50 million treasury bill. This was announced in a statement by the High Commission of India to Maldives. The Foreign Minister of Maldives, Abdulla Khaleel, expressed his gratitude for this assistance. The State Bank of India (SBI) has subscribed to the Government Treasury Bill issued by the Ministry of Finance of Maldives for another year. This arrangement, facilitating the subscription of several Treasury Bills by the SBI, has been ongoing since March 2019.
Why it matters to India
This financial support is part of a government-to-government arrangement that provides emergency financial assistance to Maldives. It also demonstrates India’s continued support to the Government and the people of the Maldives, alongside the decision to extend the special quota for export of essential commodities. Maldives is a key maritime neighbour and an important partner in India’s ‘Neighbourhood First’ policy and the ‘MAHASAGAR’ vision for regional security and growth. India’s Prime Minister Modi has emphasized the importance of this relationship and India’s commitment to assisting Maldives’ development.