- Maldives President arrived in New Delhi seeking economic assistance amid a looming debt crisis.
- Economic Challenges:
- India and the Maldives signed a major $750 million currency swap agreement.
- Maldives Expected debt waivers, as the Maldives faces a $1.5 billion debt over the next two years.
- The Maldives has high external debt, with a debt-to-GDP ratio of 110% and falling foreign reserves.
- Immediate payments towards Islamic bonds (sukuk), are due, with a total of $114 million.
- India has supported the Maldives with a $50 million bond subscription via the State Bank of India.
- Diplomatic Shift:
- The visit marks a shift in relations following the “India Out” campaign to taking steps to improve ties.
- Earlier visits of the Maldivian President to Turkiye, UAE, and China marked a different focus, but recent efforts to warm ties with India include sacking ministers critical of India.
| Key agreements signed between India-Maldives: Launch of RuPay card in the Maldives. Handover of 700 houses built with Indian assistance. Memorandums of Understanding (MoUs) between the CBI and the Maldives Anti-Corruption Commission, policing, and judicial training institutes. Cooperation in sports and youth affairs. Innaugeration of an international airport runway at Hanimadhoo island. India will assist the Maldives with the refit of a Coast Guard ship. |
Dig Deeper: Locate Maldives in the Indian Ocean along with various island countries.
