India extends $50 million financial support to Maldives via treasury bill rollover

India has extended crucial financial support to the Maldives through the rollover of the USD 50 million Treasury Bill for one more year, the Indian High Commission in the archipelago announced on Monday.

The State Bank of India (SBI) has subscribed, for one more year, a USD 50 million treasury bill issued by the Maldives government, as part of an emergency financial assistance initiative by the Indian government.

The subscription, done on the request of the Maldivian government, continues a unique government-to-government arrangement that has been in place since March 2019.

Under this arrangement, SBI has subscribed to several such treasury bills and rolled them over annually, interest-free, to support the Maldives during financial stress.

“Maldives is India's key maritime neighbour and an important partner in India's 'Neighbourhood First' policy and Vision 'MAHASAGAR' i.e. Mutual and Holistic Advancement for Security and Growth Across Regions,” the High Commission of India in Maldives said in a statement.

India had earlier extended a special export quota of essential commodities to the Maldives as part of its support.

Abdulla Khaleel, the Maldives' Minister of Foreign Affairs, expressed gratitude to India and External Affairs Minister S Jaishankar for extending crucial financial support to his country.

Khaleel posted on X, “I express my sincere gratitude to EAM @DrSJaishankar and the Government of #India for extending crucial financial support to the #Maldives through the rollover of the USD 50 million Treasury Bill.”

“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,” he said.

Treasury Bills (T-bills) "rollover" refers to the practice of reinvesting the proceeds from a maturing T-bill into a new T-bill, effectively extending the investment term.