India on Thursday said it has rolled over, for one more year, USD 50 million Maldives' government bonds as “an emergency financial assistance” to the archipelagic nation.
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 and rolling them over, annually, interest-free to the Government of Maldives,” the Indian High Commission said in a statement here.
“On the request of the Government of Maldives, the State Bank of India has subscribed, for one more year, a USD 50 million Government Treasury Bill issued by the Ministry of Finance of Maldives,” the statement said.
“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.
“This latest engagement builds on a series of diplomatic overtures aimed at strengthening the economic partnership,” Maldives' state-run Public Service Media (PSM News) said.
It follows a state visit by Prime Minister Narendra Modi, during which negotiations were held on a prospective free trade agreement and several financial accords were signed, the PSM News 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 at the Finance Ministry here.
“Central to the discussions was the Treasury bill subscribed by the State Bank of India, originally scheduled for repayment on September 18. The extension, according to the Finance Ministry, reflects India’s 'continued confidence and assistance' and underscores the depth of financial collaboration between the two nations,” the PSM News said.
Trade relations featured prominently in the dialogue, with both sides expressing a shared interest in expanding commercial ties and increasing the volume of bilateral transactions, it said, adding, the shared objective “is to identify new avenues for economic collaboration that align with national priorities.”
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,” news portal 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.
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,” 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.”
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 sai ..
Prime Minister Modi on July 26 graced the 60th Independence Day celebrations of the Maldives as the guest of honour, signalling a major turnaround in the bilateral ties after a spell of strain and tension.
Source Name : Economic Times