Male, May 12—In a significant show of financial support, India has extended the rollover of a USD 50 million Treasury Bill to the Maldives for another year, reinforcing its commitment to bolstering the island nation's economic stability and reform efforts.
The renewal comes at the request of the Maldivian government, with the State Bank of India (SBI) subscribing to the one-year Treasury Bill issued by the Maldives' Ministry of Finance. This strategic move, facilitated under a government-to-government arrangement, remains interest-free and forms part of India's emergency financial assistance to its maritime neighbour.
According to the Indian High Commission in the Maldives, SBI has beenproviding recurring annual support for Treasury Bill rollovers since March 2019. The continued assistance aligns with India’s ‘Neighbourhood First’ policy and its broader ‘Vision MAHASAGAR’—Mutual and Holistic Advancement for Security and Growth Across Regions.
The statement emphasized that the Treasury Bill rollover and India’s earlier decision to extend the special export quota for essential commodities to the Maldives highlight New Delhi’s sustained commitment to the well-being of the Maldivian government and its people.
Maldivian Foreign Minister Abdulla Khaleel deeply appreciated India and External Affairs Minister S Jaishankar's financial backing. “This timely assistance reflects the close bonds of friendship between the Maldives and India and will support the government’s ongoing efforts to implement fiscal reforms for economic resilience,” he stated.
A Treasury Bill rollover refers to reinvesting the proceeds from a maturing bill into a new one, effectively extending its term. In this case, the rollover provides much-needed fiscal flexibility for the Maldives as it advances reforms to enhance economic resilience.