Breathing Space: India Grants Maldives USD 50 Million Budget Support

Maldives Foreign Minister Moosa Zameer (L) in a meeting with India’s Foreign Minister S. Jaishankar.

The Maldives Foreign Ministry has announced that the Government of India has provided budget support of USD 50 million to the Maldives today.

The support comes in the form of a rollover of a USD 50 million Treasury Bill for an additional year, facilitated through the State Bank of India (SBI) in Male’, effective from May 13, 2024.

This announcement follows a request made by Foreign Minister Moosa Zameer to India’s External Affairs Minister Dr. S. Jaishankar during an official bilateral visit to India earlier this month.

This will help a lot in the Maldives as the country is facing difficulties in paying off its loans. Maldives is in huge debt, and our government is trying to normalize the situation.

The Foreign Ministry expressed gratitude for India’s ongoing generous support to the Maldives, particularly in the form of budgetary assistance. It highlighted that a significant portion of this assistance is dedicated to infrastructural and high-impact community development projects.

The Ministry also stated that the Government of Maldives eagerly anticipates the continuation of this collaborative partnership for the mutual benefit and prosperity of both nations.

Notably, these Government Treasury Bills are subscribed to by SBI under a unique zero-cost (interest-free) Government-to-Government arrangement, providing crucial financial support to the Maldives.

While the previous government led by the Maldivian Democratic Party (MDP) maintained close ties with India, the current administration has demonstrated a more amicable approach towards China.

Initially, relations between India and the Maldives appeared strained, exacerbated by social media posts mocking Indian officials, leading to calls for a boycott of Maldives tourism in India. However, recent indications suggest a thawing of tensions, with Tourism Minister emphasizing the importance of India’s support in boosting the Maldives’ tourism sector.

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