New Delhi: The Indian government, in a goodwill gesture, extended vital budgetary support to the Maldives government in the form of a rollover of a $50 million Treasury Bill for an additional year at the request of Maldivian Foreign Minister Moosa Zameer. The Indian High Commission announced that the State Bank of India decided to provide $50 million Treasury Bill for another year.
"The State Bank of India has subscribed for one more year to the USD 50 million Government Treasury Bill, issued by the Ministry of Finance of Maldives, upon maturity of the previous subscription," the High Commission of India said in a brief statement on Monday. This came despite a strain in the India-Maldives relations since Maldives President Mohamed Muizzu, a pro-China leader, assumed office six months back.
These Government Treasury Bills are subscribed by SBI under a unique government-to-government arrangement at zero cost (interest-free) to the Government of Maldives. The continuation of subscription has been made at the special request of the Government of Maldives to secure budgetary support from the Government of India, the statement said.
Maldives Foreign Minister thanks India
Zameer thanked India for extending the budget support and called it a true gesture of goodwill that signified the long-standing friendship between the two countries. "I thank EAM @DrSJaishankar and the Government of India for extending vital budgetary support to 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," he said on X.
"The Government of Maldives is highly appreciative of the generous support that Government of India has been providing to the Maldives in the form of budgetary support. Large number of infrastructural developmental projects and High Impact Community Developmental projects are underway with the assistance from the Government of India, which consists of a notable part as grant assistance," read a statement by the Maldivian Foreign Ministry.
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.
Strain in India-Maldives relations
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 its 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.
Muizzu's foreign policy is strongly pivoting towards China with Muizzu travelling to Beijing in January and meeting top Chinese leaders, including President Xi Jinping. His government has also signed a defence agreement with the Chinese military under which the People's Liberation Army will assist the Maldivian security and defence forces.
Meanwhile, Zameer visited India for the first time on May 8 and held delegation-level talks with External Affairs Minister S Jaishankar, who conveyed to him that the development of India-Maldives ties is based on “mutual interests” and “reciprocal sensitivity.” The Maldivian foreign ministry said Jaishankar and Zameer discussed all aspects of the India-Maldives partnership to forge opportunities for future collaboration.
(with inputs from agencies)
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