India has extended the repayment deadline for a $50 million Maldives government Treasury Bill (T-bill) by another year, offering critical financial relief to its key maritime neighbor. The Indian High Commission in Male announced the decision as "emergency financial assistance," following a request from the Maldives government, reinforcing India’s commitment to its 'Neighbourhood First' policy and Vision 'MAHASAGAR' for regional security and growth.
The State Bank of India (SBI) has facilitated the subscription of multiple T-bills since March 2019, rolling them over annually without interest under a unique government-to-government arrangement. The latest $50 million T-bill, issued by the Maldives’ Ministry of Finance, was due for repayment on Thursday but has now been deferred until 2026. This follows India’s earlier extension in May 2024 for another $50 million T-bill, part of a $200 million budget support package initiated in 2019 under former President Ibrahim Mohamed Solih. In January 2024, Maldives repaid $50 million of this debt, leaving $100 million outstanding.
On Wednesday, Maldives Finance Minister Moosa Zameer met with Indian High Commissioner G Balasubramanian, Joint Secretary Suja K Menon, and senior Ministry of External Affairs officials to discuss deepening bilateral ties. Zameer described the talks as “productive,” focusing on India’s Line of Credit (LOC)-financed projects, trade enhancement, and resolving implementation challenges. The meeting underscored India’s ongoing support, including a $750 million currency swap facility, of which $400 million is currently in use, with discussions underway with the Reserve Bank of India for the remaining INR 30 billion.
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India’s assistance extends beyond financial aid. The 14th Joint Project Monitoring Committee meeting for the Greater Male Connectivity (Male to Thilafushi Link) Project, a flagship initiative funded by India’s LOC and grants, was held on Wednesday. Co-chaired by Maldives’ Minister of Construction, Dr. Abdulla Muththalib, and Balasubramanian, the meeting reviewed progress with representatives from Exim Bank of India, contractor Afcons, and consultant Arup. The project symbolizes the robust development partnership between the two nations.
India’s multifaceted support, including earlier export quota extensions for essential commodities, highlights its role as a steadfast partner in Maldives’ economic stability and infrastructure growth. As the Maldives navigates fiscal challenges, this latest extension offers breathing room, strengthening the strategic and economic bonds between New Delhi and Male.
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