Maldives declares bankruptcy, seeks IMF bailout amid economic turmoil: Reports
By Team Asianet Newsable | First Published Feb 16, 2024, 6:14 PM ISTAmid the persistent discord between India and Maldives, President Mohammed Muizzu's deliberate 'India Out' campaign marked a significant escalation. The campaign aimed at expelling Indian soldiers from Maldives, with a deadline set for May 10, to be replaced by qualified technical staff from India.
Maldives finds itself entangled in unforeseen turmoil, a consequence of its recent actions involving strained relations with India. The ongoing dispute, exacerbated by President Mohammed Muizzu's 'India Out' campaign, has taken an unexpected turn, culminating in the Maldives declaring bankruptcy.
This dire financial situation has prompted the Maldivian government to seek a bailout loan from the International Monetary Fund (IMF), further exacerbating the economic challenges facing the island nation.
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Amid the persistent discord between India and Maldives, President Mohammed Muizzu's deliberate 'India Out' campaign marked a significant escalation. The campaign aimed at expelling Indian soldiers from Maldives, with a deadline set for May 10, to be replaced by qualified technical staff from India.
The fallout intensified as three Maldivian ministers made controversial comments about Indian Prime Minister Narendra Modi during his visit to Lakshadweep.
Despite the subsequent expulsion of the three ministers, Muizzu refrained from disapproving of their remarks, amplifying the strain on India-Maldives relations. The ramifications of this deliberate provocation became evident when reports surfaced indicating that Maldives had declared bankruptcy.
In a bid to mitigate the economic fallout, Maldives has turned to the IMF, seeking a bailout loan to navigate through its financial crisis.
Once enjoying positive relations, the dynamics between India and Maldives shifted dramatically under President Muizzu's leadership. His anti-India stance, evident in efforts to remove the Indian army and controversial comments by ministers, strained diplomatic ties.
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The aftermath of these actions led to widespread dissent among Indians, with many canceling trips to Maldives, impacting the nation's tourism industry significantly.
India, formerly a leading source of tourists for Maldives, has witnessed a sharp decline in visitor numbers. From topping the list of travelers to Maldives last year, India has now slipped to fifth place, with the repercussions extending into the tourism sector.
The financial ramifications, coupled with strained diplomatic ties, underscore the multifaceted challenges now confronting Maldives on both economic and diplomatic fronts.
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