India Extends $50 Million Aid to Maldives

India has extended a $50 million interest-free treasury bill to the Maldives for another year at the request of the Maldivian government as the country faces significant fiscal challenges. The State Bank of India facilitated the rollover, continuing a government-to-government arrangement aimed at supporting the Maldives during economic distress. Maldivian Foreign Minister Abdulla Khaleel expressed gratitude for the aid, emphasizing the importance of the partnership for ongoing fiscal reforms. The Maldives is currently grappling with external debt exceeding 134% of GDP and recent credit rating downgrades, limiting its access to new financing. Both India and China are key creditors, reflecting broader strategic competition for regional influence. India's support, including a special export quota for essential commodities, aligns with its 'Neighbourhood First' policy and commitment to regional stability.