Maldives President Mohamed Muizzu, during his state visit to India, expressed his deep appreciation for India’s financial support amid his country’s ongoing economic crisis. President Muizzu, who is in India for a five-day visit, held bilateral talks with Prime Minister Narendra Modi at Hyderabad House on October 7.
In a joint statement after the talks, President Muizzu thanked India for its decision to provide financial aid amounting to ₹30 billion (approximately USD 360 million) in addition to the USD 400 million bilateral currency swap agreement. This financial assistance, he said, would be crucial in helping the Maldives manage its foreign exchange issues.
“I am thankful for the Indian Government’s decision to provide support in the form of 30 billion Indian Rupees in addition to the 400 million US Dollars bilateral currency swap agreement, which will be instrumental in addressing the foreign exchange issues we are facing right now,” Muizzu stated.
The Maldives is currently grappling with severe financial challenges, with concerns rising over its ability to meet debt obligations. International credit rating agencies like Fitch Ratings have even flagged the possibility of default.
Following the bilateral talks, India further extended its support by granting a USD 100 million treasury bills rollover to the Maldives. Both nations also signed a significant agreement for a USD 400 million and ₹3,000 crore currency swap arrangement, reinforcing their strong economic partnership.
Prime Minister Modi emphasized the importance of the India-Maldives development relationship during the talks, stating, “Development partnership is an important pillar of our relations. We have always given preference to the priorities of the people of Maldives. This year, SBI did a rollover of 100 million dollars of the Treasury Bench of Maldives. As per the needs of the Maldives, a 400 million dollars and ₹3,000 crore currency swap agreement was also signed.”
As part of the growing bilateral ties, India also introduced RuPay card payments in the Maldives, further strengthening financial cooperation between the two nations. In addition, from Delhi, PM Modi and President Muizzu jointly inaugurated the newly constructed runway of Hanimaadhoo International Airport in the Maldives.
President Muizzu, who previously advocated for reducing Indian military presence in the Maldives and campaigned on an ‘India Out’ platform during elections, appears to have softened his stance towards India, particularly as the Maldives faces mounting financial challenges.
Traditionally, newly elected Maldivian presidents have made India their first foreign destination. However, Muizzu initially visited Turkey and China before arriving in India, signaling a potential shift in foreign policy. Despite this, his recent visit highlights the crucial role that India continues to play in supporting the Maldives through its economic crisis.