• By Kamal Kumar
  • Fri, 20 Sep 2024 08:40 AM (IST)
  • Source:JND

Maldives-India Relationships:  As both countries move to repair ties, India extended credit support of USD 50 million to Maldives, on the request of the island nation's Muizzu government, the Indian High Commission in the Maldives announced on Thursday. The current financial support will incorporate a rollover of USD 50 million treasury bills for another year, 2024-25.

As part of the new assistance, the State Bank of India (SBI) has subscribed to the USD 50 million government Treasury Bills (T-bills) issued by the Ministry of Finance of the Maldives, the commission said in a press release.

The resubscription comes upon the maturity of the previous subscription on September 19 as part of emergency financial assistance to the Maldives.

"Earlier in May 2024, SBI had similarly subscribed a USD 50 mn T-bills under the same mechanism, again on the request of the Government of Maldives. These subscriptions have been made at the special request of the Government of Maldives as emergency financial assistance," the Indian High Commission said in the release.

"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," it added.

Responding to India's emergency assistance, Maldives Foreign Minister Moosa Zameer expressed gratitude to the Indian government.

"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," he wrote in a post on X.

The latest move came as part of a thawing in the relationship between the two countries which has been on a downhill since President Muizzu took over the reins in the small island country. Shortly after he was sworn in, Muizzu stirred bilateral tensions by demanding the removal of approximately 88 Indian military personnel from the Maldives.

(With ANI Inputs)