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India has extended financial support to the Maldives by renewing a USD 50 million Treasury Bill for another year through the State Bank of India (SBI), in a move aimed at bolstering the Maldivian government’s economic reform and resilience efforts, as announced on Monday.This assistance is part of a special government-to-government arrangement, under which the Indian government enables SBI to subscribe to the Treasury Bills without charging interest. This initiative, which began in March 2019, has been renewed annually as a form of emergency financial aid at the request of the Maldivian Ministry of Finance.
India’s support beyond financial assistance
The Maldives holds strategic importance as India’s key maritime neighbor and partner in its ‘Neighbourhood First’ policy and Vision ‘MAHASAGAR’ (Mutual and Holistic Advancement for Security and Growth Across Regions). India’s support extends beyond financial assistance, including the earlier decision this year to extend the special quota for essential commodities exports to the Maldives.
Stronger India-Maldivian ties
The financial support through Treasury Bill subscription and the extension of essential commodities quota reflects India’s ongoing commitment to supporting the Maldivian government and its people.“This timely assistance reflects the close bonds of friendship between Maldives & India and will support the Government’s ongoing efforts to implement fiscal reforms for economic resilience,” said Abdulla Khaleel, the Maldives’ Minister of Foreign Affairs.“This has been done under a unique Government-to-Government arrangement, as emergency financial assistance to the Maldives,” the Indian High Commission in the Maldives stated.The Treasury Bills rollover process involves reinvesting proceeds from a maturing T-bill into a new one, effectively extending the investment term.India’s continued assistance to the Maldives during times of need demonstrates the strong bilateral relationship between the two nations, as emphasized by both governments.
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