India grants Maldives second rollover on $50 million loan

India has granted a one-year extension on a $50 million treasury bill, which matured on Thursday, following a similar rollover early this year.

This extension, facilitated through the State Bank of India in Malé, marks the second rollover of the year. The first extension was granted on May 13 for another $50 million treasury bill, which matured on May 13.

According to the Maldives' foreign ministry, the decision to grant this extension followed a request made by Maldivian foreign minister Moosa Zameer during discussions with Indian officials, including Minister of External Affairs Dr S Jaishankar, during his visit to the Maldives in May.

"The government of Maldives is highly appreciative of the generous support that the government of India has been providing to the Maldives in the form of budgetary support. This extension comes at a pivotal moment as the Government of Maldives is implementing a strong fiscal consolidation program to address the pressing economic challenges," the statement read.

The extension arrives at a crucial time as the Maldives is navigating economic recovery and pursuing fiscal consolidation strategies. The Maldivian government emphasised that this support underscores the strength of the Maldives-India partnership, further highlighting India's commitment to assisting the archipelago nation during challenging times.

"The government of India has once again demonstrated the high value it places on this enduring partnership. The government of Maldives looks forward to continuing this collaborative partnership for the mutual benefit and prosperity of the people of both nations," the statement from the Maldivian government read.

Despite challenges in the relationship between the Maldives and India during the first few months of the new Maldives' government, which took over in November, the two countries are working on closer bilateral ties. 

Maldives President Mohamed Muizzu is set to visit India soon.