India Extends USD 50 Million Treasury Bill to Maldives for Another Year

India has extended the repayment deadline for a USD 50 million Treasury Bill issued by the Maldives government, providing what is described as “emergency financial assistance.” The Indian High Commission announced this decision on Thursday, stating that the extension comes at the request of the Maldivian government.

The new repayment deadline was originally set for Thursday. Since March 2019, the Government of India has facilitated the rollover of several Treasury Bills through the State Bank of India (SBI), allowing the Maldives to manage its financial obligations without incurring interest.

Financial Support Reinforces Ties

According to the Indian High Commission, this arrangement reflects a unique Government-to-Government partnership aimed at supporting the Maldives during challenging times. The statement emphasized that this latest extension is part of India’s ongoing commitment to assist the Government and people of the Maldives.

Maldives’ Finance Minister Moosa Zameer met with India’s High Commissioner to the Maldives, G Balasubramanian, and officials from the Ministry of External Affairs to discuss the broader context of cooperation between the two nations. Zameer described the discussions as “productive,” highlighting the review of progress on Indian-funded projects and strategies to enhance trade relations.

The Treasury Bill is part of the USD 200 million budget support extended to the Maldives by the previous administration under President Ibrahim Mohamed Solih in 2019. In January 2024, the Maldives repaid USD 50 million of this amount. The remaining USD 100 million saw its repayment deadline shifted previously, and once again, India has granted a one-year extension on the outstanding amount.

Strengthening Economic Collaborations

The Maldives’ Finance Ministry also noted that the discussions included the development project portfolio financed under the Line of Credit (LOC) provided by India. The officials addressed key challenges in project implementation, aiming at successful completion of the initiatives.

In addition to deferring the repayment of the USD 100 million, India has extended a USD 750 million currency swap facility to the Maldives. Reports indicate that USD 400 million of this facility is currently being utilized by the Maldivian government, which is also in negotiations with the Reserve Bank of India for the remaining INR 30 billion.

On the same day, a meeting of the 14th Joint Project Monitoring Committee was held regarding the Greater Male Connectivity and Male to Thilafushi Link Project. The meeting, co-chaired by Maldives’ Minister of Construction, Housing and Infrastructure, Dr. Abdulla Muththalib, and G Balasubramanian, involved discussions on the progress of this flagship project, which is being implemented with Indian support under the LOC.

This continued financial collaboration underscores the Maldives’ strategic importance to India, reinforcing their relationship as part of India’s ‘Neighbourhood First’ policy and the Vision ‘MAHASAGAR’ initiative, which promotes mutual and holistic advancement for security and growth across regions.