India extends USD 565 million Line of Credit facility to Maldives

India has extended a USD 565 million (MVR 8.6 billion) line of credit facility to Maldives.

The agreement was signed during Indian Prime Minister Narendra Modi’s official visit to Maldives. Finance Minister Moosa Zameer signed on behalf of the Maldives, while India’s External Affairs Minister, Dr S Jaishankar, signed on behalf of the Indian government.

At the signing ceremony, President Dr Mohamed Muizzu said the funds would be used to implement development projects in sectors for the development of the country including defence, sports, health and education.

He noted that priority would be given to initiatives with direct public benefit, which includes a road construction project in Addu City as one of the projects signed under the agreement.

President Muizzu also welcomed the beginning of negotiations on a Free Trade Agreement with India, describing it as a step towards strengthening bilateral ties between both nations.

During the previous administration, several key projects were undertaken through an earlier USD 878 million credit line from India.

The Export-Import Bank of India (Exim Bank) extended loans amounting to USD 1.4 billion (MVR 22 billion) over five years, including USD 400 million (MVR 6.1 billion) for the construction of a bridge connecting Vilimale' and Gulhifalhu.