India provides financial assistance of $250 Million to Maldives to combat COVID-19

Indian government provided the Maldives with $250 million worth financial assistance on Sunday as budgetary support to help it recover from the Coronavirus pandemic.

Indian government provided the Maldives with $250 million worth financial assistance on Sunday as budgetary support to help it recover from the Coronavirus pandemic. The ceremony was held at the ministry of foreign affairs of Maldives in the presence of Foreign minister Abdulla Shahid, finance minister Ibrahim Ameer, high commissioner Sunjay Sudhir and the head of State Bank of India (SBI) Male, Bharat Mishra.

“The assistance is being provided under the most favourable terms possible to the Government of Maldives. It is to be made available through treasury Bond sale to the State Bank of India (SBI), Male, which has a tenure of 10 years for repayment. 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. Maldives is the only country to which India has provided such assistance,” the Indian mission statement said. The budgetary support is being extended without any conditions, the Maldives government can use it according to its own priorities and the transaction won’t be reflected in the external borrowings of the Maldives.

India has also continuously lifted export restrictions on medical consumables, respiratory apparatus, and testing kits and reagents throughout the pandemic to assist the Maldives in its battle against Covid-19. India has also maintained the supply of essential commodities to the Maldives despite global trade disruptions.

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