Male, May 12 (PTI) India has extended crucial financial support to the Maldives through the rollover of the USD 50 million Treasury Bill for one more year, a move the Maldivian government said will support its ongoing efforts to implement fiscal reforms for economic resilience.

At the request of the Maldivian government, the State Bank of India (SBI) has subscribed, for one more year, a USD 50 million Government Treasury Bill issued by the Ministry of Finance of Maldives, the Indian High Commission in the Maldives said in a statement on Monday.

Since March 2019, the Indian government has been facilitating subscription of several such Treasury Bills by the SBI and rolling them over, annually, interest-free to the Government of Maldives, it said.

"This has been done under a unique Government-to-Government arrangement, as emergency financial assistance to the Maldives," the statement said.

The Maldives is India's key maritime neighbour and an important partner in India's 'Neighbourhood First' policy and Vision 'MAHASAGAR' i.e. Mutual and Holistic Advancement for Security and Growth Across Regions, the statement said.

India has assisted the Maldives in times of need and the subscription of this Treasury Bill, along with, the Government of India's decision earlier this year to extend the special quota for export of essential commodities for the Maldives, reflect India's continued support to the Government and the people of the Maldives, it added.

Abdulla Khaleel, the Maldives' Minister of Foreign Affairs, expressed gratitude to India and External Affairs Minister S Jaishankar for extending crucial financial support to his country.

"This timely assistance reflects the close bonds of friendship between #Maldives & #India and will support the Government’s ongoing efforts to implement fiscal reforms for economic resilience," he said.

Treasury Bills (T-bills) "rollover" refers to the practice of reinvesting the proceeds from a maturing T-bill into a new T-bill, effectively extending the investment term. PTI NSA NSA

Government-to-Government financial assistance: rollover of a treasury bill extends emergency support to Maldives and aids fiscal reform. The State Bank of India has subscribed to and rolled over, for one additional year, a Government Treasury Bill issued by the Ministry of Finance of the Maldives at the Maldives' request under a Government-to-Government arrangement. This annual rollover practice since 2019 provides emergency financial assistance through an interest-free subscription that reinvests proceeds from maturing T-bills to extend liquidity and support the Maldives' fiscal reform efforts.