India's Support For Maldives: SBI Extends Subscription Of Government Bill Worth $50 Million

India's Support For Maldives: SBI Extends Subscription Of Government Bill Worth $50 Million

According to reports, these Maldivian Treasury bills are subscribed to by the largest lender in India under an idiosyncratic government-to-government arrangement.

Juviraj AnchilUpdated: Monday, May 13, 2024, 03:51 PM IST
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While the relationship between the Maldives and India has been going through a rough patch, over the past few months, ties, despite being on the verge, have not entirely broken down. According to reports, SBI has extended its subscription to the Government Treasury Bill, issued by the Ministry of Finance of the Maldives. This came to pass, as the previous subscription matured.

Treasury Bill Worth USD 50 Million

According to reports, these Maldivian Treasury bills are subscribed to by the largest lender in India under an idiosyncratic government-to-government arrangement. This transaction is carried out at zero cost (interest-free) to the Government of the Maldives.

This Treasury bill is worth USD 50 million.

According to the press release published by the High Commission of the Maldives, this was done at the request of the Government of the Maldives to secure budgetary support from the Indian government.

These developments come at a time, when bilateral ties between the governments have been passing through a tunnel of turbulence. The crisis started with some ministers of the island's government making objectionable comments about India and its citizens. It further escalated, thanks to the country's president, Mohamed Muizzu's rhetoric.

The crisis in the bilateral relationship further burgeoned due to President Muizzu's statements.

The crisis in the bilateral relationship further burgeoned due to President Muizzu's statements. | X

The Battle Of The Indian Ocean

The protectionist assertion even led to the Maldives government asking the Indian forces to leave the country in the Indian Ocean. It is to be noted that Muizzu is widely regarded as a leader with a greater inclination to China. His policies are generally deemed pro-China, compared to the country's previous pro-India policy.

The Maldives is a strategically critical territory, as it occupies a space in the Indian Ocean, that is critical to defence and trade activities that are carried out in the corridor. China, which has had a tumultuous relationship with its neighbours in the South China Sea, is looking to control the means in the Indian Ocean as well.

One of the ways it exhibited this ambition was through its action in Sri Lanka and its investment in the island nation and its ports, specifically Hambantota, before the country went bust.

Therefore, further development in the bilateral equation between India and the Maldives would determine the course of the region.

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