Maldives thanks India for offering $50 million financial support

The Maldives has expressed heartfelt gratitude to India for extending a $50 million financial lifeline, crucial for the island nation’s ongoing economic reforms and fiscal stability.(Munsif Daily)

This assistance comes in the form of a one-year rollover of a government-to-government Treasury Bill, initially subscribed by the State Bank of India (SBI) in 2019. The interest-free arrangement, renewed annually at the Maldives’ request, underscores India’s commitment to its ‘Neighbourhood First’ policy and Vision SAGAR (Security and Growth for All in the Region). (Munsif Daily, The Financial Express)

Maldivian Foreign Minister Abdulla Khaleel publicly thanked India’s External Affairs Minister S. Jaishankar and the Indian government, stating that the timely support reflects the close bonds of friendship between the two nations and will aid the Maldives’ efforts to implement fiscal reforms for economic resilience .(Munsif Daily)

The Maldives is grappling with significant economic challenges, including a total public and publicly guaranteed debt of $9.4 billion—over 134% of its GDP as of late 2024. The nation faces mounting pressure due to declining foreign exchange reserves and fears of default, exacerbated by credit rating downgrades from Fitch and Moody’s .(Reuters)

India’s financial support is part of a broader effort to assist the Maldives in navigating these challenges. Beyond the Treasury Bill rollover, India has extended special quotas for essential commodity exports to the Maldives and is involved in significant infrastructure projects, such as the Greater Malé Connectivity Project, aimed at enhancing regional connectivity and economic development .(Reuters, Associated Press)

This renewed financial assistance not only reinforces the strong bilateral ties between India and the Maldives but also highlights India’s role in promoting stability and growth in the Indian Ocean region.