India announces budgetary support worth $50 million to Maldives for another year
- In Reports
- 05:24 PM, Sep 20, 2024
- Myind Staff
The Indian government has offered financial assistance to improve relations with the Maldives. The recent report suggests that India has agreed to roll over a $50 million Treasury Bill and extend its financial support to the Maldives. This comes following the request made by the Maldivian government, according to the Indian High Commission in the Maldives.
On September 19, the Indian High Commission in the Maldives said in a press release that the State Bank of India (SBI), at the request of the Maldivian government, had subscribed to the $50 million government Treasury Bills (T-bills) issued by the Ministry of Finance of the Maldives for a period of one more year. After the first rollover of a $50 million Treasury Bill in May, this is the second rollover approved by the Indian government this year.
In its press release, the Indian High Commission in the Maldives said, “Earlier in May 2024, SBI had similarly subscribed a $50 mn T-bills under the same mechanism, again on the request of the Government of Maldives. These subscriptions have been made at the special request of the Government of Maldives as emergency financial assistance.”
As part of India's "Neighbourhood First" policy, the Indian High Commission referred to the Maldives as a crucial partner and key maritime neighbour.
“Maldives is India's key maritime neighbour and an important partner under India's 'Neighbourhood First' policy and Vision SAGAR i.e. Security and Growth for All in the Region. “India has assisted Maldives in times of need and the current subscription of T-bills along with the Government of India's decision earlier this year, of extending special quota for export of essential commodities for Maldives by one more year reflect India's continued support to the Government and the people of the Maldives,” The Indian High Commission in Maldives further stated.
Following India's declaration, former Maldivian foreign minister Abdulla Shahid expressed his satisfaction with New Delhi's choice to provide Male with budgetary support. Greeting India as a "time-tested friend" and "unwavering ally," he conveyed his gratitude to India for its particular consideration of his people.
Abdulla Shahid took to X and wrote, “Delighted to hear that India has subscribed the $ 50 million T-Bills issued by the Government of Maldives for one more year, as emergency financial assistance. India continues to prove time and time again, that it is a time-tested friend, and an unwavering ally, despite this government's mismanagement of the economy and its questionable foreign policy. I thank India for its special consideration extended towards the people of Maldives. Friendly, cordial relationships with all countries are essential for progress and prosperity.”
Relations between India and Maldives snapped due to strained ties with the newly elected President Mohamed Muizzu. Within weeks of taking office, he sought evacuation from Maldives of nearly 88 Indian military personnel. Before the deadline fixed by Muizzu on May 10, these personnel were repatriated and replaced from three aviation platforms and replaced with Indian civilians. Although relations between the two countries deteriorated and three Maldivian deputy ministers made disparaging remarks about Prime Minister Narendra Modi regarding his photos from the trip to Lakshadweep, Muizzu's government in the Maldives recently adopted a more reconciliatory stance.
PM Modi had favoured that the chain of Indian islands be developed as a beach resort and that domestic travel be encouraged. As a result of the posts going viral, the issue escalated into a significant diplomatic dispute, prompting New Delhi to call the Maldivian ambassador and lodge a strong protest. The three deputy ministers were suspended later.
The Muizzu-led government has been working hard since January to mend the relationship, and part of that effort has been a number of high-level visits, such as the President himself coming to India for the swearing-in ceremony of Prime Minister Narendra Modi or the visit of the Maldivian Foreign Minister.
S Jaishankar, the minister of external affairs, visited the Maldives earlier in August. According to a Ministry of External Affairs (MEA) release, Jaishankar signed a Memorandum of Understanding on capacity building and launched six High Impact Community Development Projects (HICDPs) during his visit to Male. The statement also stated that Jaishankar reviewed bilateral relations with Foreign Minister Moosa Zameer and made a call to President Mohamed Muizzu of the Maldives. He gave Prime Minister Narendra Modi's greetings to Muizzu during their meeting.
Image source: Mint
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