New Delhi has rolled over, for one more year, USD 50 million Maldives' government bonds as “an emergency financial assistance,” the Indian High Commission said here Thursday.
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 (SBI) and rolling them over, annually, interest-free to the Government of Maldives,” the Indian High Commission said in a statement.
“On the request of the Government of Maldives, the State Bank of India (SBI) has subscribed, for one more year, a USD 50 million Government Treasury Bill issued by the Ministry of Finance of Maldives,” the statement said.
The deadline for repayment was Thursday.
“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.
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.
“Discussions centred on ongoing cooperation and ways to further strengthen Maldives–India relations,” Maldives' Ministry of Finance and Planning said in a post on X after the meeting held at the Finance Ministry.
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.” “The T-bill is part of USD 200 million taken as budget support in 2019 by the former administration led by President Ibrahim Mohamed Solih,” news portal Edition.mv said.
“In January 2024, the government repaid a USD 50 million T-bill from this. Of the remaining USD 100 million, USD 50 million was due in May last year. India granted a one year extension on that,” it said, adding, “This time, too, India has deferred the remaining amount of the T-bill.” 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,” 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.
Meanwhile, the 14th Joint Project Monitoring Committee meeting of Greater Male Connectivity, Male to Thilafushi Link Project was held on Wednesday at the Ministry of Construction, Housing and Infrastructure.
“India and Maldives reviewed the progress of the Greater Male Connectivity Bridge, a flagship project by India being implemented under the LoC and grant,” the Indian High Commission said in another post on X.
The meeting was co-chaired by Minister of Construction, Housing and Infrastructure, Dr Abdulla Muththalib and G Balasubramanian and attended by senior officials from both the governments, Exim Bank of India, apart from contractor Afcons and consultant Arup, the Maldives' ministry said.
