New Delhi, Oct 7 (UNI) Maldives President Mohamed Muizzu on Monday expressed gratitude to India for the financial bailout package of USD400 million and Rs 30 billion, and invited PM Narendra Modi to visit his country next year on the occasion of the 60th year of establishment of diplomatic ties.
In his media statement after holding bilateral talks with PM Modi, the Maldives President said India is a key partner of Maldives for its socio and economic development.
“I want to thank India for the generous assistance over the years including the latest financial assistance, of Rs 30 billion Indian rupees in addition to the USD 400 million currency swap, which will be instrumental in the foreign exchange issues we are facing.”
The Maldives is staring at a debt default as its foreign exchange reserves have dropped to USD 440m (Pound 334mn), just enough for one-and-a-half months of imports.
He said that he had held extensive discussions with PM Modi in taking stock of the bilateral relations. “We agreed on a comprehensive vision document for comprehensive security and maritime partnership”, he said. The areas covered include cooperation in development work, expanding ties in trade and economic activities, digital and financial initiatives, energy projects, health, maritime and security.
He said the two sides have inked key documents aimed at enhancing the ties in several critical areas, youth and sports, in combating corruption, which will help to strengthen and provide more transparency and accountability.
He said that Maldives looks forward to harnessing the economic potential of the bilateral ties, with both sides agreeing to begin FTA negotiations.
“We hope to welcome more Indian tourists to Maldives. India is the source of the largest tourist traffic to Maldives,” said the Maldives President, amid reports that the Indian Ocean atoll nation has seen a drop of 50,000 Indian tourists over the past few months.
He said that Maldives is fully committed to strengthen cooperation with India across a wide spectrum of areas.
“India is an important partner in the maritime security domain,” he said, adding that next year both sides will mark the 60th year of their diplomatic ties.
“I have invited PM Modi to commemorate the occasion,” he said, adding that both sides will get together to work out the details of the visit.
“Maldives will remain a true friend of India,” said President Muizzu, who had come to power in November last year on the back of a strident “India Out” campaign, and was seen as pro-China in the initial months of his governance.
The currency swap agreement signed between Maldives and India today will provide Maldives with 400 million dollars or euros as well as 30 billion Indian rupees, the Maldives Monetary Authority (MMA) has said.
MMA said the central bank will be able to swap in two currency windows under the new agreement and can opt for swapping on different occasions, adhadhu reported.
“While the dollar/euro swap facility is a measure to support short-term foreign exchange needs, the Indian rupee swap facility will facilitate trade transactions between India and Maldives in the respective currencies,” the MMA said.
The agreement was signed by MMA Governor Ahmed Munawar and Secretary at the Indian Finance Ministry Ajay Seth.
Former Maldives President Mohamed Nasheed, a friend of India, in a post on X said he is glad to see the Muizzu government building ties with India.
“India & Maldives are natural partners with so much in common: music, films, food, culture, history and geography. We should always remain friends. So happy to see things fall into place & the relationship fixed. Congratulations to PM Modi and Pres. Dr. Muizzu,”.
