India extends Maldives’ $50-mn govt bond repayment deadline

India on Thursday said it has rolled over, for one more year, $50 million Maldives’ government bonds as “an emergency financial assistance” to the archipelagic nation.

The deadline for the repayment of a $50 million Treasury Bill (T-bill) was extended once again “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 and rolling them over, annually, interest-free to the Government of Maldives,” the Indian High Commission said in a statement here.

“On the request of the Government of Maldives, the State Bank of India has subscribed, for one more year, a $50 million Government Treasury Bill issued by the Ministry of Finance of Maldives,” the statement said.

“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.

“This latest engagement builds on a series of diplomatic overtures aimed at strengthening the economic partnership,” Maldives’ state-run Public Service Media (PSM News) said.

It follows a state visit by Prime Minister Narendra Modi, during which negotiations were held on a prospective free trade agreement and several financial accords were signed, the PSM News said.

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.