Maldives President Muizzu thanks India for debt relief, hopes for trade deal

Maldives President Dr. Mohamed Muizzu has expressed his gratitude to India for providing crucial debt relief, which has significantly aided the country's economic stability. Addressing a gathering at the Maldives Centre for Social Education (MCSE) last week, President Muizzu extended his "sincere gratitude" to both China and India for their support in easing the Maldives' debt repayment and enabling economic sovereignty, according to a statement from the Maldivian President's Office.

The Indian government has provided budget support amounting to $50 million to the Maldives. This support was facilitated through a rollover of a $50 million Treasury Bill for an additional year via the State Bank of India, Male, announced in May this year.

In the budget for FY 2024-2025, the Indian government allocated Rs 400 crore ($47.7 million) for infrastructure development and community projects in the Maldives. Additionally, there was a significant increase in the revised Indian budget for FY 2023-2024, which rose to Rs 770.90 crore ($91.9 million). This increase underscores ongoing support for major infrastructure projects in the Maldives.

President Muizzu also announced that his government is in negotiations with India to facilitate a currency swap agreement. This financial arrangement would help the Maldives address local shortages of US dollars, thus managing liquidity and hedging against foreign exchange risks more effectively.