Maldives Foreign Minister Moosa Zameer has expressed gratitude to External Affairs Minister S Jaishankar as the Indian government has extended budgetary support to Maldives by advancing a treasury bill of US$50 million. He said the Indian government’s announcement reflects the “enduring bond of friendship between Maldives and India”.
In a post on X, Mr Zameer said, “Heartfelt gratitude to External Affairs Minister @DrSJaishankar and Govt of #India for providing crucial budgetary support to Maldives with the rollover of US$50 million Treasury Bills. This generous gesture reflects the enduring bonds of friendship between #Maldives and #India.”
At the request of the Government of Maldives, State Bank of India (SBI) has subscribed to a Government Treasury Bill (T-Bill) of US$ 50 million issued by the Ministry of Finance of Maldives for a further period of one year on the maturity of the previous subscription on September 19, the Indian High Commission in Maldives said in a press release.
This is the second rollover given by the Government of India this year, the first being the US$50 million treasury bill rollover done on May 13.
According to the press release, the Maldives government “highly appreciates” 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 Foreign Ministry said, “The decision by the Indian government to grant this extension comes following a request made by Foreign Minister Moosa Zameer during discussions held between the two governments during the recent visit of Indian External Affairs Minister S Jaishankar to Maldives from 9-11 August 2024.”
It said, “The Government of Maldives highly appreciates the generous support being provided by the Government of India to Maldives in the form of budgetary support. This extension comes at a crucial time when the Government of Maldives is implementing a robust fiscal consolidation programme to address the pressing economic challenges.”
The Maldives Foreign Ministry said that India has once again demonstrated how much importance it attaches to the enduring partnership between the two countries.
The press release said, “The Government of India has once again demonstrated the importance it attaches to 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 countries.”
In the press release, the Indian High Commission described Maldives as India’s key maritime neighbour and an important partner under India’s ‘Neighbourhood First’ policy.
The Indian High Commission in Maldives said, “Maldives is a key maritime neighbour of India and an important partner under India’s ‘Neighbourhood First’ policy and vision ‘SAGAR’ (Security and Growth for All in the Region).”
It said, “India has supported Maldives in times of need, and the current subscription of T-bills and the decision by the Government of India earlier this year to extend for one year the special quota for export of essential commodities to Maldives reflect India’s continued support to the Government and people of Maldives.”
It said SBI had similarly purchased T-bills worth US$50 million under the same arrangement in May 2024 at the request of the Maldives government. These subscriptions have been made as emergency financial assistance on the specific request of the Maldives government.
Relations between India and Maldives became strained after Maldives President Mohamed Muizzu took office. Soon after his swearing-in, Mr Muizzu fuelled bilateral tensions by demanding the withdrawal of around 88 Indian military personnel from the Maldives. By the May 10 deadline set by President Muizzu, these personnel were withdrawn from three aviation platforms and replaced by Indian nationals.
Recently, Mr Muizzu’s government in Maldives has adopted a conciliatory approach after relations between the two countries soured, resulting in a diplomatic row in January when three Maldivian deputy ministers made derogatory remarks against Prime Minister Narendra Modi over pictures of him during his visit to Lakshadweep.
Since January, several efforts have been made by the Muizzu-led government to restore relations, including several high-level visits, including the President himself to India for the swearing-in ceremony of Prime Minister Narendra Modi or the visit of the Maldives Foreign Minister.
Earlier in August, External Affairs Minister S Jaishankar visited the Maldives. According to a release from the Ministry of External Affairs (MEA), during his visit to Male, Mr Jaishankar signed MoUs on capacity building and inaugurated six High Impact Community Development Projects (HICDPs).
Mr Jaishankar also met Mr Muizzu and reviewed bilateral relations with his Maldivian counterpart Moosa Zameer.
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