India Extends $50 Million Support to Maldives Amid Strengthening Ties
Male, Maldives, September 20: India has extended financial support to the Maldives by rolling over a $50 million Treasury Bill for another year. This decision was made at the request of the Maldivian government, as announced by the Indian High Commission in the Maldives.
The State Bank of India (SBI) subscribed to the $50 million Treasury Bills issued by the Maldivian Ministry of Finance for an additional year, following the maturity of the previous subscription on September 19. This marks the second rollover of a $50 million Treasury Bill this year, with the first occurring in May.
The Indian High Commission emphasized the importance of the Maldives as a key maritime neighbor and partner under India’s ‘Neighbourhood First’ policy and Vision SAGAR (Security and Growth for All in the Region). The High Commission highlighted India’s continued support, including the extension of a special quota for exporting essential commodities to the Maldives.
Former Maldivian Foreign Minister Abdulla Shahid expressed his gratitude towards India, calling it a ‘time-tested friend’ and ‘unwavering ally.’ He appreciated India’s emergency financial assistance despite the Maldivian government’s economic mismanagement and questionable foreign policy.
Relations between India and the Maldives had been strained after President Mohamed Muizzu took office, leading to the repatriation of 88 Indian military personnel. However, recent efforts, including high-level visits and diplomatic engagements, have aimed to restore and strengthen bilateral ties.
In August, Indian External Affairs Minister S. Jaishankar visited the Maldives, signing MoUs on capacity building and inaugurating six High Impact Community Development Projects. He also met with President Muizzu and Foreign Minister Moosa Zameer to review bilateral relations and extend greetings from Indian Prime Minister Narendra Modi.
Doubts Revealed
Treasury Bill -: A Treasury Bill is a short-term loan that the government takes from people or other countries. It is like borrowing money and promising to pay it back later.
Maldives -: The Maldives is a small country made up of many islands in the Indian Ocean, south of India. It is known for its beautiful beaches and clear blue waters.
Indian High Commission -: The Indian High Commission is like an office or embassy that represents India in another country. It helps with diplomatic relations and supports Indian citizens abroad.
Maritime neighbor -: A maritime neighbor is a country that is close to another country by sea. India and the Maldives are maritime neighbors because they are near each other in the Indian Ocean.
Abdulla Shahid -: Abdulla Shahid is a politician from the Maldives who has served as the Foreign Minister. He helps manage the Maldives’ relationships with other countries.
Strained relations -: Strained relations mean that the relationship between two countries has been difficult or tense. It means they have had disagreements or problems in the past.
