SRINAGAR: Prime Minister Narendra Modi on Friday held talks with Maldivian President Mohamed Muizzu and announced Rs 4,850 crore line of credit to support the Maldives development.
PM Modi as per Indian Express, reaffirmed India’s commitment to strengthening the Maldives defence capabilities and underscored the importance of defence and security cooperation as a reflection of mutual trust. He also announced that India and the Maldives will work towards finalising a bilateral investment treaty and confirmed that negotiations for a free trade agreement are already underway.
This is the first line of credit to the Maldives denominated in Indian rupees. “We have signed an MoU for a fresh ₹4,850 crore line of credit. This continues India’s tradition of supporting the Maldives’ development needs, and we expect it will fund several key infrastructure projects, directly benefiting Maldivian citizens,” Indian High Commissioner Munu Mahawar said, as reported by NDTV.
This assistance is expected to fund key infrastructure and developmental projects across the country. This apart, an amendatory agreement was signed to reduce the Maldives’ annual debt repayment obligations on previous Indian-funded LoCs, providing further financial relief to the nation.
