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During his visit to the Maldives on July 25, Prime Minister Narendra Modi announced a ₹4,850 crore Line of Credit to support the debt-ridden island nation and confirmed the start of negotiations for an India-Maldives Free Trade Agreement (IMFTA).
Male: Prime Minister Narendra Modi on July 25 announced India will extend Rs 4,850 crore Line of Credit to debt-ridden Maldives and that negotiations for the launch of a Free Trade Agreement (IMFTA) with Maldives has already commenced. PM Modi held wide-ranging talks with Maldivian President Mohamed Muizzu, focusing on consolidating cooperation in areas of trade, defence and infrastructure. The two leaders held a one-on-one meeting as well as delegation-level talks.
India has also agreed to reduce the Maldives’ annual debt repayment on a government-funded Line of Credit by 41%, which means the Maldives will now pay a smaller amount each year, making it easier for the country to manage its finances. While the total loan amount remains the same, the reduced yearly payments will give the Maldives more time and flexibility to repay the debt without putting too much pressure on its economy.
“The Maldives is our 'Neighbourhood First' and the primary partner in the Indian Ocean Region Vision. The consultations included various sectors, with a special focus on trade and cultural connections. Both India and the Maldives remain committed to ongoing cooperation, as both sides have agreed. India will always support the Maldives to strengthen its defence capabilities,” PM Modi stated. PM Modi also took part in the inauguration of a new Ministry of Defence building in Male.
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Muizzu said, “The Prime Minister's visit coincides with two cherished occasions. Tomorrow, PM Modi will join me in the 60th Independence Day celebrations of the Maldives. Today, we have jointly released a commemorative stamp to mark the 60th anniversary of the establishment of formal diplomatic relations between the Maldives and India. This afternoon, Prime Minister Modi and I had extensive discussions.” Muizzu said that the resources from MoUs will be used for utilization of Maldives government across key sectors.
"Prime Minister Modi and I had the honour of witnessing the signing of four MoUs and three agreements on several key areas. Among these is a line of credit agreement for USD 565 million. This will be utilised for priority projects of my government across key sectors," he said.
India and the Maldives marked several key milestones in bilateral cooperation with the handing over of 3,300 social housing units in Hulhumalé, built under India’s Buyers’ Credit facilities. Additionally, the Roads and Drainage System Project in Addu City was inaugurated, along with six High Impact Community Development Projects across the Maldives. India also handed over 72 vehicles and various equipment to the Maldivian government, and will further provide 72 heavy vehicles to the Maldivian Ministry of Defence, strengthening infrastructure and capacity-building efforts in the island nation.
(With inputs from ANI)
