PM Modi announces $565 mn line of credit for Maldives
India and Maldives began talks on a free trade agreement; both nations issued a stamp celebrating 60 years of diplomatic ties
Prime Minister Narendra Modi and the Maldivian President Mohamed Muizzu announced during a joint press conference on Friday (July 25) in Malé that India has provided a Line of Credit (LoC) of $565 million to the Maldives.
It was also announced that negotiations for a free trade agreement between India and the Maldives have started. “We have decided to provide a line of credit of USD 565 million to the Maldives,” said Modi.
An announcement was also made on the reduction of annual debt repayment obligations of the Maldives on the LoCs funded by India. The two countries jointly issued a stamp on the 60th anniversary of the establishment of India-Maldives diplomatic relations.
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‘India is Maldives's closest neighbour’
“India is Maldives' closest neighbour. Maldives holds an important place in India's 'Neighbourhood First' policy and 'MAHASAGAR' vision. India is proud of being the most trusted friend of the Maldives,” said Modi.
“Be it a crisis or pandemic, India has always stood with them as first responders. Be it making essential commodities available or handling the economy after COVID, India has always worked together,” he added.
The Prime Minister also said that this year India and Maldives are also celebrating 60 years of their diplomatic relations, adding that the roots of their relations were “older than history” and as deep as the sea.
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Muizzu hails FTA talks
Thanking the Prime Minister, the Maldivian President Mohamed Muizzu said that Modi’s visit coincided with two occasions.
“ Tomorrow, PM Modi will join me in the 60th Independence Day celebrations of the Maldives. Today, we have jointly released a commemorative stamp to mark the 60th anniversary of the establishment of formal diplomatic relations between the Maldives and this afternoon, Prime Minister Modi and I had extensive discussions,” said Muizzu.
“Prime Minister Modi and I had the honour of witnessing the signing of four MoUs and three agreements on several key areas. Among these is a line of credit agreement for $ 565 million. This will be utilised for priority projects of my government across key sectors,” he added.
Describing the initiation of negotiations for a free trade agreement between India and the Maldives as a “landmark initiative”, Muizzu said that it marked a significant step forward in strengthening the economic partnership between the two countries.
(With agency inputs)