India rolls over $50 million worth Treasury Bill to help the Maldives

India rolls over $50 million worth Treasury Bill to help the Maldives

As the Maldives grapples with economic headwinds marked by high public debt and a widening fiscal deficit, India has extended crucial financial support. In a significant move, the State Bank of India rolled over a $50 million Treasury Bill, a gesture of continued assistance since 2019 under a unique government-to-government framework. This comes at a critical juncture as the island nation aims to leverage its tourism-driven economy, which reached a milestone of 2.05 million arrivals in 2034. However, with debt servicing obligations nearing a billion dollars annually, the Maldives faces daunting fiscal pressures. Last year, the Reserve Bank of India also stepped in, providing a $400 million currency swap to shore up reserves. As both nations work to stabilize the Maldivian economy, this partnership underscores the importance of regional solidarity in navigating economic challenges.

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