India has expressed its readiness to extend financial assistance to the Maldives, according to a recent statement from an Indian official. This support could be pivotal as the Maldives navigates its current economic challenges.
Indian media reports indicate that the Maldives may access up to USD 400 million through the Reserve Bank of India's (RBI) currency swap program. Additionally, the Maldives could tap into an $800 million line of credit established in 2019, although specific details on this funding have not yet been disclosed by the Indian government.
Despite facing significant financial hurdles, President Dr. Mohamed Muizzu and his administration are proactively seeking external support. The Maldives Ministry of Finance has been working diligently to secure financial aid from allied nations and international financial institutions while fostering strong relationships with investors to bolster the country’s economic stability.
The President's Office has disclosed that President Muizzu is expected to visit India soon. Indian media reports says that the trip will see discussions on financial assistance as a key agenda item. The planned visit underscores the Maldives' commitment to strengthening bilateral ties with India. Both nations are working to enhance their cooperative relationship, with a focus on economic collaboration and mutual support.
In June 2024, President Muizzu travelled to India at the invitation of Prime Minister Narendra Modi, to attend the swearing-in ceremony of the Prime Minister and the Council of Ministers of the Government of India. As the Maldives continues to navigate its financial landscape, the prospective assistance from India could provide significant relief and support the country’s ongoing efforts to stabilize and grow its economy.