In a gesture borne out of friendliness, India has decided to roll over, for another year, government bonds worth USD 50 million that Maldives had borrowed from the State Bank of India (SBI) as an “emergency financial assistance”.
The Indian High Commission said on Thursday that the deadline for the repayment was September 18, 2025, but that the country’s largest public sector lender had “subscribed, for one more year, a USD 50 million Government Treasury Bill issued by the Ministry of Finance of Maldives”.
“This has been done under a unique Government-to-Government arrangement, as an emergency financial assistance to Maldives,” the statement, posted on the High Commission's X account, said, adding that it was done “on the request of the Maldives government.”
“Since March 2019, the Government of India has been facilitating subscription of several such Treasury Bills by the State Bank of India (SBI) and rolling them over, annually, interest-free to the Government of Maldives,” the Indian High Commission mentioned in its statement.
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.
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The Indian mission also said that the government had extended the special quota for export of essential commodities for Maldives and the re-subscription of another T-bill earlier this year since India believes in assisting its neighbour in times of need.
“It reflects India's continued support to the Government and the people of the Maldives,” the Indian mission added.
Maldives' Finance Minister, Moosa Zameer, met with the High Commissioner of India to the Maldives, G Balasubramanian, and Joint Secretary, Suja K Menon, along with senior officials of the Ministry of External Affairs (MEA) on Wednesday.
“Discussions centred on ongoing cooperation and ways to further strengthen Maldives-India relations,” said the Maldives' Ministry of Finance and Planning in a post on X after the meeting.
Zameer also called the meeting “productive” and said, in a post on X: “We reviewed progress of India’s LOC-financed projects, addressed key challenges, and explored ways to strengthen Maldives-India trade ties.”
Meanwhile, news portal Edition.mv informed that the T-bill was part of USD 200 million taken as budget support in 2019 by the former administration led by President Ibrahim Mohamed Solih.
“In January 2024, the government repaid a USD 50 million T-bill from this. Of the remaining USD 100 million, USD 50 million was due in May last year. India granted a one-year extension on that,” the portal reported, adding, “This time, too, India has deferred the remaining amount of the T-bill.”
The Finance Ministry confirmed that Wednesday's meeting featured discussions about the development project portfolio which will be financed under the Line of Credit (LOC) extended by the Indian government.
“In addition to deferring repayment of the USD 100 million issued as budget support, a USD 750 million currency swap facility was extended to Maldives. USD 400 million of this is being used by the government. The government is also in discussion with India's central bank, Reserve Bank of India, to take the remaining INR 30 billion swap facility,” Edition.mv said.
Meanwhile, the 14th Joint Project Monitoring Committee meeting of Greater Male Connectivity, Male to Thilafushi Link Project, was also held on Wednesday at the Ministry of Construction, Housing and Infrastructure.
It was co-chaired by the Minister of Construction, Housing and Infrastructure, Dr Abdulla Muththalib and G Balasubramanian and attended by senior officials from both the governments, Exim Bank of India, apart from contractor Afcons and consultant Arup, the Maldives' ministry said.
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