In the backdrop of strained bilateral relations, India provided financial assistance to the Maldives on Monday. The State Bank of India subscribed to government securities worth USD 50 million under a “unique Government-to-Government arrangement at zero cost (interest-free).” This move followed President Muizzu’s decision to remove Indian troops from the island nation amid deteriorating ties, worsened by derogatory remarks against Prime Minister Modi made by some Maldives ministers.
This act of goodwill by the Indian government was in response to a special request from the Maldives government seeking budgetary support. The subscription by SBI to Maldives’ treasury bills is part of an ongoing bilateral financial mechanism.
Announcing the development, the Indian High Commission conveyed through X:
“The State Bank of India has extended its subscription for another year to the USD 50 million Government Treasury Bill issued by the Ministry of Finance of Maldives, following the maturity of the previous subscription. These Treasury Bills are subscribed by SBI under a distinctive Government-to-Government agreement, bearing zero cost (interest-free) for the Government of Maldives. The decision to continue the subscription was made at the special request of the Maldives government, aiming to obtain budgetary assistance from the Government of India.”
Expressing appreciation, the Maldives also extended gratitude to the Government of India for the recent financial assistance, marking a rare display of thankfulness. The official press release, shared by the foreign minister of the island nation, characterized it as a “genuine act of goodwill” that underscores the enduring friendship between Maldives and India.
In a tweet, Foreign Minister of Maldives, Moosa Zameer, conveyed gratitude to EAM Dr. S Jaishankar and the Government of India for providing essential budgetary support to the Maldives through the rollover of USD 50 million Treasury Bill.
A Treasury bill, commonly known as a T-bill, is a type of short-term debt issued by the government. These bills are usually sold at a price lower than their face value and do not offer interest payments similar to traditional bonds. Instead, investors purchase them at a discounted rate and receive the full face value when they mature.