Male:

Maldives Foreign Minister Moosa Zameer has expressed gratitude to External Affairs Minister S Jaishankar as the Indian government extended budgetary support to the Maldives with the rollover of the USD 50 million Treasury Bill. He said the Indian government’s announcement demonstrates “enduring bonds of friendship between the Maldives and India.”

In a post on X, Mr Zameer stated, “Sincere gratitude to External Affairs Minister @DrSJaishankar and the Government of #India for extending crucial budgetary support to the Maldives with the rollover of USD 50 million Treasury Bill. This generous gesture reflects the enduring bonds of friendship between #Maldives and #India.”

At the request of the Maldivian government, the State Bank of India (SBI) has subscribed the USD 50 million government Treasury Bills (T-bills) issued by the Ministry of Finance of the Maldives for a period of one more year upon the maturity of the previous subscription on September 19, the Indian High Commission in the Maldives said in a press release.

This is the second rollover granted by the Indian government this year, following the first rollover of a USD 50 million Treasury Bill on May 13.

According to the press release, the Maldivian government is “highly appreciative” of the support announced by India following the request made by Moosa Zameer during his meeting with Mr Jaishankar in August.

In a press release, the Maldives Ministry of Foreign Affairs stated, “Government of India’s decision to grant this extension came following a request to that effect made by Foreign Minister Moosa Zameer during the discussions held between the two governments at the recent visit of the Minister of External Affairs of India, S Jaishankar, to the Maldives from 9-11 August 2024.”

“The Government of the 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 the Maldives is implementing a strong fiscal consolidation program to address the pressing economic challenges,” it added.

Maldivian Ministry of Foreign Affairs noted that India has once again showcased the high value it places on the enduring partnership between the two nations.

The press release stated, “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.”

In the press release, the Indian High Commission called the Maldives India’s key maritime neighbour and important partner under India’s ‘Neighbourhood First’ policy.

The Indian High Commission in Maldives stated, “Maldives is India’s key maritime neighbour and an important partner under India’s ‘Neighbourhood First’ policy and Vision SAGAR i.e. Security and Growth for All in the Region.”

“India has assisted the Maldives in times of need, and the current subscription of T-bills along with the Government of India’s decision earlier this year, of extending special quota for export of essential commodities for Maldives by one more year reflect India’s continued support to the Government and the people of the Maldives,” it added.

It noted that SBI had similarly subscribed a USD 50 mn T-bills under the same mechanism in May 2024, at the request of the Maldives government. These subscriptions have been made at the special request of the Maldives government as emergency financial assistance.

India’s ties with the Maldives were strained after Maldives President Mohamed Muizzu took office. Shortly after he was sworn in, Mr Muizzu stirred bilateral tensions by demanding the removal of approximately 88 Indian military personnel from the Maldives. These personnel were repatriated from three aviation platforms and replaced by Indian civilians by the May 10 deadline set by President Muizzu.

Recently, Mr Muizzu’s government in the Maldives took a reconciliatory tone after ties between the two nations soured, leading to a diplomatic row in January after three Maldivian deputy ministers made derogatory comments against Prime Minister Narendra Modi over his pictures from the visit to Lakshadweep.

Since January, many efforts have been undertaken by the Muizzu-led government in order to restore the relationship, which includes several high-level visits, including the President himself coming to India for the swearing-in ceremony of PM Narendra Modi or the visit of the Maldivian Foreign Minister.

Earlier in August, External Affairs Minister S Jaishankar visited Maldives. During his visit to Male, Mr Jaishankar signed MoUs on capacity building and inaugurated six High Impact Community Development Projects (HICDPs), according to a Ministry of External Affairs (MEA) release.

Mr Jaishankar also called on Mr Muizzu and reviewed bilateral relations with his Maldives counterpart Moosa Zameer.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

A file photo of the flag of Republic of Maldives.

Despite global lenders and rating agencies flagging a “high risk” of debt distress in the Maldives, the government said it is well prepared to stave off a financial meltdown.

Addressing Colombo-based journalists on Friday evening (September 13, 2024), Minister of Foreign Affairs Moosa Zameer and Minister of Finance Mohamed Shafeeq ruled out a possible default and pointed to “crucial steps” taken by the government towards fiscal consolidation and reform.

India, Maldives hold defence dialogue focusing on Indian Ocean

The top officials’ assurance comes days after rating agency Moody’s downgraded the island country’s credit rating and warned of a full-blown debt crisis and possible default, amid looming deadlines for foreign debt servicing.

President Mohamed Muizzu assumed office in November 2023 after a big election win — he has a comfortable majority in Parliament or People’s Majlis as well — but currently faces a daunting challenge as the Indian Ocean archipelago grapples with high external debt. “The Muizzu administration is taking advice from the International Monetary Fund, but there is no immediate plan to sign up for its programme,” the Ministers said, expressing confidence that its bilateral partners would step in.

China is the Maldives’s largest creditor and India is another key lender. The two countries are financing a host of infrastructure projects that the government hopes will aid better connectivity and economic development. “Both India and China are very sensitive to our challenge and are willing to help,” Mr. Zameer said, pointing to “many options” on the table, including a possible debt freeze, currency swaps, and local currency settlements. “We will discuss these as and when there is a need.”

On Friday (September 13, 2024), the Maldives’s Ministry of Economic Development & Trade signed an agreement with the People’s Bank of China to establish a local currency settlement framework. Authorities are in talks with India for a similar arrangement.

“We are already taking all the necessary steps including reform of State-Owned Enterprises and our health sector. We are switching from blanket to targeted subsidies and rationalising our public expenditure,” Mr. Shafees said. Following the downgrade by Moody’s, the Finance Ministry said it was engaging with all its bilateral and multilateral partners to meet the financing requirements, and that a “strong performance” in the vital tourism sector was expected to boost growth.

Tourist arrivals have seen an uptick in 2024. Chinese arrivals lead the list, contributing 12% of visitors, while arrivals from India declined sharply from 11% of visitors to 6%, the World Bank said in its May 2024 update. The period coincides with strained bilateral ties between India and the Maldives, on the heels of the “India Out” campaign around Mr. Muizzu’s election last year, and amid controversial statements made by two junior ministers in his government that triggered a call to “boycott Maldives” within India.

Emphasising that relations have since seen a marked improvement, Mr. Zameer said Indian tourist arrivals are “picking up very well” and the neighbours are keen to strengthen ties. “We have had high-level engagement”, including External Affairs Minister Jaishankar’s visit to the Maldives in August, and the countries’ “very pragmatic” leaders have addressed the “initial mistrust”, he said. President Muizzu is expected to travel to New Delhi soon on his first bilateral visit, although he has Mr. Modi on the sidelines of other global meets and at Mr. Modi’s swearing in ceremony this year.

“I think India-Maldives ties now are as good as they were during President Maumoon Abdul Gayoom’s time, which is considered the best time in our relationship,” Mr. Zameer added.

Male:

In a goodwill gesture, India has decided to extend vital budgetary support to the Maldives government with the rollover of a USD 50 million Treasury Bill for another year on the Maldivian government’s special request, it was announced on Monday.

The State Bank of India has subscribed for one more year to the USD 50 million Government Treasury Bill, issued by the Ministry of Finance of Maldives, upon maturity of the previous subscription, the High Commission of India said in a brief statement on Monday.

The Indian government took this decision despite the bilateral ties experiencing turbulence since Maldives President Mohamed Muizzu, a pro-China leader, assumed office six months back.

These Government Treasury Bills are subscribed by SBI under government-to-government, a unique arrangement at zero cost (interest-free) to the Government of Maldives.

The continuation of subscription has been made at the special request of the Government of Maldives to secure budgetary support from the Government of India, the statement said.

The Maldivian government on Monday thanked India for its support.

“I thank EAM Dr S Jaishankar and the Government of India for extending vital budgetary support to the Maldives with the rollover of USD 50 million Treasury Bill. This is a true gesture of goodwill which signifies the longstanding friendship between Maldives and India,” Foreign Minister Moosa Zameer tweeted.

The Government of India has provided budget support of USD 50 million to the Maldives. The support was in the form of a rollover of USD 50 million Treasury Bill, for an additional year, through the State Bank of India, Male’, from May 13, 2024, the Maldivian Foreign Ministry said in a statement.

“Government of India’s decision to rollover the T-Bill came following a request to that effect made by Foreign Minister Moosa Zameer to India’s External Affairs Minister Dr S Jaishankar, during the official bilateral visit to India from May 8-10, the statement said.

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. A large number of infrastructural developmental projects and High Impact Community Developmental projects are underway with assistance from the Government of India, which consists of a notable part as grant assistance, the statement said.

The Government of Maldives looks forward to continuing this collaborative partnership for the mutual benefit and prosperity of their people, it said.

Zameer after coming back from the visit said that significant strides have been made in expediting India-assisted projects in the Maldives, as he underscored the government’s commitment to prioritising the resumption and completion of these projects.

It comes amid a downturn in the bilateral ties between the two countries since President Muizzu assumed office in November and immediately asked India to withdraw some 89 Indian military personnel from the country by May 10. The Indian military personnel were operating three aviation platforms in the island nation.

Zameer on Saturday said 76 Indian military personnel were replaced by civilian employees of the Hindustan Aeronautics Limited which manufactured the two helicopters gifted by India, thus also ending the suspense over the exact number of those repatriated at the insistence of Male.

However, the Maldives government has no intention of removing the doctors from India at Senahiya.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Male, Maldives:

Maldivian Foreign Minister Moosa Zameer has said that significant strides have been made in expediting India-assisted projects in the Maldives, as he underscored the government’s commitment to prioritising the resumption and completion of these projects.

Mr Zameer, who visited India from May 8 to 10 on his very first bilateral official visit, said he and his Indian counterpart S Jaishankar engaged in bilateral discussions on May 9 to address pivotal matters aimed at expediting the projects initiated with India’s financial assistance.

He said the discussions with S Jaishankar focused on the operational dynamics of the committees entrusted with executing these projects, psmnews.mv reported.

Speaking at a press conference held in the President’s Office, Mr Zameer said India has given the Maldives the green signal to extend the repayment deadline for $ 150 million of a $ 200 million debt. The loan was secured by the previous government upon assuming office in 2019.

Mr Zameer said that $ 50 million of the $ 200 million owed to India was repaid in January. He emphasised that the Indian government has not made any demands in exchange for extending the repayment period of the remaining $ 150 million.

The minister said that a spectrum of initiatives across the Maldives have been kickstarted through loans and grants from India during the previous administration.

He said significant strides have been made in expediting India-assisted projects.

He emphasised the current government’s commitment to prioritising the resumption and completion of these projects. He also underscored his dedication to this endeavour during his recent visit to India.

During the official discussions between the two nations, S Jaishankar reiterated the significance of India’s ongoing projects in the Maldives.

Mr Zameer’s visit to India came amid a downturn in the bilateral ties between the two countries since pro-China president Mohamed Muizzu assumed office six months back.

The relations between the two countries came under severe strain in view of Muizzu insisting on withdrawal of Indian military personnel operating three military platforms in the island nation.

Mr Zameer on Saturday said 76 Indian military personnel were replaced by civilian employees of the Hindustan Aeronautics Limited which manufactured the two helicopters gifted by India, thus also ending the suspense over the exact number of those repatriated at the insistence of Male.

However, the Maldives government has no intention of removing the doctors from India at Senahiya. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Male, Maldives:

Maldivian Foreign Minister Moosa Zameer has said that significant strides have been made in expediting India-assisted projects in the Maldives, as he underscored the government’s commitment to prioritising the resumption and completion of these projects.

Mr Zameer, who visited India from May 8 to 10 on his very first bilateral official visit, said he and his Indian counterpart S Jaishankar engaged in bilateral discussions on May 9 to address pivotal matters aimed at expediting the projects initiated with India’s financial assistance.

He said the discussions with S Jaishankar focused on the operational dynamics of the committees entrusted with executing these projects, psmnews.mv reported.

Speaking at a press conference held in the President’s Office, Mr Zameer said India has given the Maldives the green signal to extend the repayment deadline for $ 150 million of a $ 200 million debt. The loan was secured by the previous government upon assuming office in 2019.

Mr Zameer said that $ 50 million of the $ 200 million owed to India was repaid in January. He emphasised that the Indian government has not made any demands in exchange for extending the repayment period of the remaining $ 150 million.

The minister said that a spectrum of initiatives across the Maldives have been kickstarted through loans and grants from India during the previous administration.

He said significant strides have been made in expediting India-assisted projects.

He emphasised the current government’s commitment to prioritising the resumption and completion of these projects. He also underscored his dedication to this endeavour during his recent visit to India.

During the official discussions between the two nations, S Jaishankar reiterated the significance of India’s ongoing projects in the Maldives.

Mr Zameer’s visit to India came amid a downturn in the bilateral ties between the two countries since pro-China president Mohamed Muizzu assumed office six months back.

The relations between the two countries came under severe strain in view of Muizzu insisting on withdrawal of Indian military personnel operating three military platforms in the island nation.

Mr Zameer on Saturday said 76 Indian military personnel were replaced by civilian employees of the Hindustan Aeronautics Limited which manufactured the two helicopters gifted by India, thus also ending the suspense over the exact number of those repatriated at the insistence of Male.

However, the Maldives government has no intention of removing the doctors from India at Senahiya. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

Emphasising that “peace and security” of the Indian Ocean is important for countries in the neighbourhood including India, Maldivian Foreign Minister Moosa Zameer on Thursday said that his government has “not permitted the Chinese vessel” for research purposes in the Maldivian waters.

The statement by the Maldivian Foreign Minister came in the wake of the Chinese marine research vessel Xiang Yang Hong 3 returning to Maldivian waters, marking its second visit to the archipelago nation within two months.

“The peace and security of the Indian Ocean is important for both India and Maldives and Sri Lanka and the rest of the countries that we have in the neighbourhood. So, we will continue to work together as I said earlier,” he said.

Elaborating on the port call for Chinese vessels, he said, “Our government issued personal rotation and friendly portable permits, and diplomatic clearances came from the Chinese side, which is very common in Maldives.”

“So that’s how it has happened we as a peaceful country, welcome those vessels which come for peaceful purposes. But they didn’t come for research in the Maldivian waters, we have not permitted the Chinese vessel for research in the Maldivian waters,” Maldivian Foreign Minister Moosa Zameer said while maintaining that research vessels are not welcome in the Maldivian waters.

On April 27, Chinese marine research vessel Xiang Yang Hong 3 returned to Maldivian waters, marking its second visit to the archipelago nation within two months after Pro-China Maldives President Mohamed Muizzu’s ruling People’s National Congress (PNC) won the Parliamentary elections, as reported by Adhadhu news on Friday.

It is pertinent to note that Defence Minister Ghassan Maumoon last month told the Maldivian Parliament that the Chinese vessel would not conduct any research despite sailing inside and near Maldivian waters. 

“There was no permission given to conduct any research in the Maldives territory. After docking in Male’ and buying food, they did a crew change. People who came on an airplane went board the boat and those on the boat left via the airplane. That was the permission that was given,” Adhadhu quoted Mr Maumoon as saying on March 25.

Relations between India and the Maldives have been strained since President Muizzu took office in November, shifting the government’s focus towards China.

External Affairs Minister S. Jaishankar and Maldives Foreign Minister Moosa Zameer. File
| Photo Credit: PTI

Maldivian Foreign Minister Moosa Zameer on April 6 said India’s gesture to renew the quota to allow the export of certain quantities of essential commodities for his nation signifies the longstanding bilateral friendship and the commitment to further expand trade and commerce.

“India allowed the export of certain quantities of essential commodities for the year 2024-25 at the request of the Maldives government,” the Indian High Commission said, in Male, on April 5.

Announcing the move through a post on social media platform X, the Indian High Commissioner said that this was being done “under a unique bilateral mechanism” under which the quotas for each of these items have been revised upwards.

“The approved quantities are the highest since this arrangement came into effect in 1981,” the notice by the mission said. Mr. Zameer took to X to thank India for the move.

“I sincerely thank EAM @DrSJaishankar and the Government of #India for the renewal of the quota to enable #Maldives to import essential commodities from India during the years 2024 and 2025,” Mr. Zameer wrote.

“This is truly a gesture which signifies the longstanding friendship, and the strong commitment to further expand bilateral trade and commerce between our two countries,” he said.

External Affairs Minister S. Jaishankar responded to Zameer’s post, saying India stands firmly committed to its Neighbourhood First and SAGAR policies.

Security and Growth for All in the Region (SAGAR) is India’s policy or doctrine of maritime cooperation in the Indian Ocean region. India’s ‘Neighbourhood First’ Policy underlines the renewed primacy that the country seeks to attach to its neighbouring countries.

The announcement for the renewal of the quota comes amidst a diplomatic row between the two countries since November last year when President Mohamed Muizzu, known for his pro-China leanings, within hours of taking the oath demanded India to repatriate its 88 military personnel from his country.

The relations further deteriorated when three Maldivian officials made crass comments after Prime Minister Narendra Modi posted photos and videos of the Lakshadweep Islands resulting in a heavy backlash by Indians, including many celebrities. #BoycottMaldives campaign resulted in a significant decline in Indian tourists to the island nation too.

The 1981 India and Maldives trade agreement provides for the export of essential commodities. According to the records from the Indian High Commission, growing from modest beginnings, India-Maldives bilateral trade crossed the $300 million mark for the first time in 2021, which further crossed the $500 million mark in 2022.

According to Friday’s announcement, there has also been an increase of 5% in the quotas for eggs, potatoes, onions, sugar, rice, wheat flour and dal (pulses).

Last year as well, India continued the export of rice, sugar and onions to the Maldives despite a worldwide ban on export of these items from India. “India remains strongly committed to supporting human-centric development in the Maldives, as part of its ‘Neighbourhood First policy,” it said.

“The quota for river sand and stone aggregates, crucial items for the booming construction industry in the Maldives, has been increased by 25% to 10,00,000 MT each,” it added.

Surrounded by the ocean, the islands in the Maldives and the many atolls don’t have enough river sand to support their construction industry, hence the need for importing sand and stone aggregates to the country.