"Generous Gesture": Maldives As India Sends "Crucial Budgetary Support"

Maldives Foreign Minister Moosa Zameer has expressed gratitude to External Affairs Minister S Jaishankar as the Indian government extended budgetary support to the Maldives with the rollover of the USD 50 million Treasury Bill. He said the Indian government's announcement demonstrates "enduring bonds of friendship between the Maldives and India."

In a post on X, Mr Zameer stated, "Sincere gratitude to External Affairs Minister @DrSJaishankar and the Government of #India for extending crucial budgetary support to the Maldives with the rollover of USD 50 million Treasury Bill. This generous gesture reflects the enduring bonds of friendship between #Maldives and #India."

At the request of the Maldivian government, the State Bank of India (SBI) has subscribed the USD 50 million government Treasury Bills (T-bills) issued by the Ministry of Finance of the Maldives for a period of one more year upon the maturity of the previous subscription on September 19, the Indian High Commission in the Maldives said in a press release.

This is the second rollover granted by the Indian government this year, following the first rollover of a USD 50 million Treasury Bill on May 13.

According to the press release, the Maldivian government is "highly appreciative" of the support announced by India following the request made by Moosa Zameer during his meeting with Mr Jaishankar in August.

In a press release, the Maldives Ministry of Foreign Affairs stated, "Government of India's decision to grant this extension came following a request to that effect made by Foreign Minister Moosa Zameer during the discussions held between the two governments at the recent visit of the Minister of External Affairs of India, S Jaishankar, to the Maldives from 9-11 August 2024."

"The Government of the Maldives is highly appreciative of the generous support that the Government of India has been providing to the Maldives in the form of budgetary support. This extension comes at a pivotal moment as the Government of the Maldives is implementing a strong fiscal consolidation program to address the pressing economic challenges," it added.

Maldivian Ministry of Foreign Affairs noted that India has once again showcased the high value it places on the enduring partnership between the two nations.

The press release stated, "The Government of India has once again demonstrated the high value it places on this enduring partnership. The Government of Maldives looks forward to continuing this collaborative partnership for the mutual benefit and prosperity of the people of both nations."

In the press release, the Indian High Commission called the Maldives India's key maritime neighbour and important partner under India's 'Neighbourhood First' policy.

The Indian High Commission in Maldives stated, "Maldives is India's key maritime neighbour and an important partner under India's 'Neighbourhood First' policy and Vision SAGAR i.e. Security and Growth for All in the Region."

"India has assisted the Maldives in times of need, and the current subscription of T-bills along with the Government of India's decision earlier this year, of extending special quota for export of essential commodities for Maldives by one more year reflect India's continued support to the Government and the people of the Maldives," it added.

It noted that SBI had similarly subscribed a USD 50 mn T-bills under the same mechanism in May 2024, at the request of the Maldives government. These subscriptions have been made at the special request of the Maldives government as emergency financial assistance.

India's ties with the Maldives were strained after Maldives President Mohamed Muizzu took office. Shortly after he was sworn in, Mr Muizzu stirred bilateral tensions by demanding the removal of approximately 88 Indian military personnel from the Maldives. These personnel were repatriated from three aviation platforms and replaced by Indian civilians by the May 10 deadline set by President Muizzu.

Recently, Mr Muizzu's government in the Maldives took a reconciliatory tone after ties between the two nations soured, leading to a diplomatic row in January after three Maldivian deputy ministers made derogatory comments against Prime Minister Narendra Modi over his pictures from the visit to Lakshadweep.

Since January, many efforts have been undertaken by the Muizzu-led government in order to restore the relationship, which includes several high-level visits, including the President himself coming to India for the swearing-in ceremony of PM Narendra Modi or the visit of the Maldivian Foreign Minister.

Earlier in August, External Affairs Minister S Jaishankar visited Maldives. During his visit to Male, Mr Jaishankar signed MoUs on capacity building and inaugurated six High Impact Community Development Projects (HICDPs), according to a Ministry of External Affairs (MEA) release.

Mr Jaishankar also called on Mr Muizzu and reviewed bilateral relations with his Maldives counterpart Moosa Zameer.

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