The government of India has sanctioned the State Bank of India (SBI) to rollover a treasury bill issued by the Maldives government worth USD 50 million for another year as much needed financial support to the island nation.
The High Commission of India to the Maldives in a statement said, on the request of the Maldives government, SBI has subscribed for one more year, the treasury bill worth USD 50 million.
According to the statement, the Indian government has been facilitating the subscription of several of such treasury bills by the SBI and rolling them over annually, interest free to the Maldives government.
“This has been done under a unique government to government arrangement, as emergency financial support to the Maldives,” the High Commission said.
The Minister of Foreign Affairs, Dr Abdulla Khaleel in a post on X, thanked his Indian counterpart Dr S. Jaishankar and the Indian government for the continued assistance.
The Ministry of Foreign Affairs through a statement said India has granted a one-year extension to the USD 50 million treasury bill, which matured on 12 May, through the SBI.
“This timely and generous assistance stands as a strong testament to the close bonds of friendship between the two countries,” the Ministry said.
“At a time when the Maldives is undertaking significant economic and fiscal reforms, this assistance provides vital liquidity relief and underscores the depth of the bilateral partnership.”
Since March 2019, the Government of India has extended several such Treasury bills through SBI without interest. In addition to rollovers of the T-bills, the Indian government has also arranged a currency swap facility to improve Maldives’ state reserves.
The Indian government in September last year had facilitated the rollover of another USD 50 million T-Bill which will now mature in September 2025.