Prime Minister Narendra Modi on Monday appreciated the sentiments expressed by Maldivian President Ibrahim Mohamed Solih after India extended a USD 250 million loans to Male to mitigate the impact of the COVID-19 pandemic.

"As close friends and neighbors, India and Maldives will continue to support each other in our fight against the health and economic impact of COVID-19," PM Modi tweeted.

Before PM Modi's message, Maldives President had expressed his gratitude to the Indian government, saying the New Delhi has always risen to the occasion whenever the Maldives "needed a friend."

"India has always risen to the occasion whenever the Maldives needed a friend. My sincere thanks to PM Narendra Modi, government, and people of India for their neighborly spirit and generosity following the official handover of USD250 million as financial assistance today," Ibrahim Mohamed Solih tweeted.

India had extended a USD 250 million loan to the Maldives government to mitigate the impact of the COVID-19, in which the State Bank of India (SBI) will subscribe to a Treasury Bond issued by the Government of Maldives with a 10-year tenor.

The loan was handed over at a ceremony here in the presence of Maldives Foreign Minister Abdulla Shahid, Finance Minister Ibrahim Ameer, Indian High Commissioner Sunjay Sudhir, and CEO of SBI in Male, Bharat Mishra.

The loan has been extended in response to the request made by Maldives President Ibrahim Mohamed Solih to Prime Minister Narendra Modi for financial assistance and was announced after the virtual meeting between External Affairs Minister S Jaishankar and Maldives Foreign Minister Abdulla Shahid earlier this year.

Foreign Minister of Maldives Abdulla Shahid thanked India for the financial assistance and speaking in Hindi termed India as a "Mahan Mitra" of the Maldives during the tough times caused by the pandemic.