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India has rolled over a $50-million Treasury Bill to support the Maldives' economy amid challenges like high public debt and a widening fiscal deficit.
This rollover is part of a government-to-government arrangement, continuing since 2019, to provide emergency financial assistance.
The Maldives thanked India for the timely support, which helps with fiscal reforms and economic resilience.
In 2024, the Maldives saw a 8.9% increase in tourist arrivals, reaching a record 2.05 million.
To boost foreign reserves, the government mandated tourist resorts to exchange foreign currency into Maldivian Rufiyaa.
Despite economic stability, the Maldives faces large debt servicing commitments of nearly $1 billion each year.
Last year, the Reserve Bank of India extended currency swap facilities of $400 million and ₹30 billion to help the Maldives through a financial crunch.
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