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Informist, Monday, Oct. 7, 2024

 

NEW DELHI – India on Monday agreed to provide support of INR 30 billion in addition to $400 million to Maldives under the bilateral currency swap agreement amidst the ongoing financial crisis and depleting foreign exchange reserves of the island nation. The currency swap is among the agreements signed after the bilateral meeting between Prime Minister Narendra Modi and Maldives President Mohamed Muizzu.

 

"We have always given preference to the priorities of the people of the Maldives," Modi said. "This year, the State Bank of India did a rollover of $100 million of the Treasury bills of Maldives. As per the needs of Maldives, a $400 million and INR 30 billion currency swap agreement was also signed,” Modi said.

 

President Muizzu said that the currency swap agreement would help address the foreign exchange issues that the island nation was facing. "I’m thankful for the Indian government's decision to provide support of INR 30 billion in addition to a $400 million bilateral currency swap agreement, which will be instrumental in addressing the forex issues we are facing right now," Muizzu said.

 

President Muizzu also thanked India for its timely emergency financial assistance, including rolling over Treasury bills subscribed by the State Bank of India amounting to $100 million in May and September for one year, which provided the much-needed financial cushion for the Maldives in addressing its urgent financing needs. The island nation is grappling with a serious economic crisis, with foreign exchange reserves dwindling to just $440 million – enough to cover only about one and a half months of imports. 

 

Both leaders decided to initiate discussions on a free trade agreement to strengthen economic ties between the two countries. "We will also work for trade settlement in local currency. We have focussed on digital connectivity also, Modi said. "RuPay card has been launched in Maldives. In the coming time, work will be done to connect India and Maldives with the Unified Payments Interface as well," Modi said.

 

Prime Minister Modi also said that India will continue supporting the training and capacity building of the Maldives National Defence Forces. India and Maldives will work together for stability and prosperity in the Indian Ocean region, Modi said. The Maldives president, who arrived on Sunday, is on a four-day state visit to India. Muizzu will visit Agra and Mumbai on Tuesday and attend a business event in Mumbai. On Wednesday, he will go to Bengaluru to attend another business event.

 

The India-Maldives relations came under strain after Muizzu, who is believed to have pro-China leanings, became the president in November last year.   End

 

US$1 = INR 83.97

 

Reported by Kuldeep Singh

Edited by Saji George Titus

 

 

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