New Delhi: In a gesture of strong bilateral partnership, India has announced a significant financial aid package for the Maldives, totalling Rs 30 billion (360 million dollars) and a 400 million dollars bilateral currency swap agreement, designed to bolster the island nation’s struggling economy.
The agreements, signed during a bilateral and delegation-level meeting in New Delhi, were met with gratitude from Maldivian President Mohamed Muizzu, who expressed his thanks for the timely support. “I am thankful for the Indian Government’s decision to provide support in the form of Rs 30 billion in addition to a 400 million dollars bilateral currency swap agreement which will be instrumental in addressing the foreign exchange issues we are facing right now,” Muizzu was quoted as saying by news agency ANI.
Prime Minister Narendra Modi, emphasising the importance of the “development partnership” between India and the Maldives, stated that India has always prioritised the needs of the Maldivian people. He highlighted the recent 100 million dollar rollover of the Maldivian Treasury Bench by SBI, as well as the newly signed currency swap agreement, aimed at providing much-needed foreign exchange reserves.
The meeting also witnessed the launch of RuPay card payments in the Maldives, further strengthening economic ties between the two nations. PM Modi also virtually inaugurated the newly developed runway at Hanimaadhoo International Airport, constructed with concessional funding from India.
Looking ahead, PM Modi announced that India and the Maldives will be connected through UPI in the future, building on the recent introduction of RuPay cards. This will further facilitate financial transactions and enhance economic collaboration.
The financial aid package, including the currency swap agreement and the State Bank of India’s investment in Maldivian government bonds, comes as a welcome relief for the Maldives, which has been facing economic challenges.
