India hands over USD 250 million aid to Maldives
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Male (Maldives), Sept 21: With an aim to help the neighboring country, Maldives to mitigate the economic impact of the COVID-19 pandemic, India has provided financial assistance of 250 million dollars as budgetary support to the Maldives government.
The loan was handed over at a ceremony here in the presence of the Ministry of Foreign Affairs, Maldives government to mark the occasion. Maldives Foreign Minister Abdulla Shahid, Finance Minister Ibrahim Ameer, High Commissioner Sunjay Sudhir, and CEO, SBI, Male Bharat Mishra were present on the occasion.
"USD 250 million assistance provided to the Maldives by India, as budgetary & revenue support for mitigating the impact of the COVID pandemic on Maldivian economy. Under this, SBI will subscribe to a Treasury Bond issued by Govt. of the Maldives with a comfortable 10-yr tenor," the High Commission of India in the Maldives said.
Walking the talk!
— India in Maldives (@HCIMaldives) September 20, 2020
USD 250 million assistance provided to 🇲🇻 by 🇮🇳, as budgetary & revenue support for mitigating impact of the #COVID pandemic on Maldivian economy. Under this,#SBI will subscribe to a Treasury Bond issued by Govt. of Maldives with a comfortable 10-yr tenor. pic.twitter.com/yEDOHlAwHJ
It was in response to the request made by Maldives President Ibrahim Mohamed Solih to Prime Minister Narendra Modi for financial assistance to overcome the difficult economic situation in the Maldives and has been extended without conditions. Maldives government has the liberty to use the money in repairing the domestic economic situation according to their priorities. The financial assistance is being routed through SBI, Male so that it does not reflect in the external borrowings of the Maldives.
India has provided a sovereign guarantee to SBI for this financial assistance. The loan has a comfortable tenor of 10 years and a very low-interest rate. Since the principal payment is due only at the end of 10 years, it will not put any immediate debt servicing liability other than bi-annual interest payment. The Maldives is the only country to which India has provided such assistance.
Thanking India for the financial assistance, Foreign Minister of Maldives Abdulla Shahid spoke in Hindi terming India as a "Mahan Mitra" of the Maldives during the tough times caused by the pandemic. "Today the whole world is currently fighting a battle that it has never faced before -- an enemy that we can't see, a danger that cannot be taken lightly and a virus that has brought the air travel (havai sewao) to a halt and forced countries to take tough decisions. This epidemic has forced many to close their borders and their homes," Shahid said in a video.
"But our 'mitro' -- like always -- have proven that this epidemic cannot force them to close their hearts. India during these tough times has been a 'Mahan Mitra (a great friend)'," he added in the video.
India has proven time and time again that the Maldives-India partnership will be a high priority! While the whole world has had to close their borders, and their homes, India has proven that #Covid19 will not force them to close their hearts to the Maldivian people. pic.twitter.com/j1AixJ2uxP
— Abdulla Shahid (@abdulla_shahid) September 20, 2020
"Grateful to receive the USD 250 million financial assistance from India to the Maldives today. The financial assistance provided through subscription in GoM Domestic Treasury Bonds by SBI will support the financing of the revenue gap, and meet the Gov's immediate financing needs," the Maldivian foreign minister tweeted. He added that the financial assistance is "the largest financial support package" announced by a bilateral partner during the COVID-19 pandemic.
Further, he added, "With the USD1.4 billion financial package announced in December 2018 and the cash grants for community projects, this is by far the largest single donor assistance the Maldives has received."