Muizzu thanks Indian govt for financial support; PM Modi says 'always given preference to priorities of Maldives'

NEW DELHI: Maldives President Mohamed Muizzu on Monday expressed gratitude to Prime Minister Narendra Modi for the government's decision to provide financial assistance of Rs 30 billion ($360 million), in addition to a $400 million bilateral currency swap agreement.
"I am thankful for the Indian Government's decision to provide support in the form of Rs 30 billion in addition to $400 million bilateral currency swap agreement which will be instrumental in addressing the foreign exchange issues we are facing right now," Muizzu said, ANI reported.
The agreements were signed during the bilateral and delegation-level talks held at Hyderabad House in New Delhi.
Prime Minister Modi described the "development partnership" as a key pillar in the relations between India and the Maldives, stating that India has always prioritised the needs of the Maldivian people.
Read also: 'Will never hurt India's security interests, Maldives first but will prioritise ties with India'
Furthermore, PM Modi and President Muizzu witnessed the first transaction of RuPay card payments launched in the Maldives, and virtually inaugurated the runway of Hanimaadhoo International Airport.
The runway was developed with a concessional line of credit funding from India.
PM Modi in a joint press statement along with President Muizzu said that India and the Maldives will be connected through UPI in the future, adding that, "A few days back, RuPay card was launched in Maldives. In the time to come, India and Maldives will be connected through UPI."
In September, India announced that the State Bank of India would subscribe to $50 million worth of Maldivian government bonds. Earlier, in May 2024, SBI had similarly subscribed to $50 million in T-bills under the same mechanism, following a request from the Government of Maldives.
President Muizzu, who is on a five-day visit to India, was accorded a ceremonial reception at the Rashtrapati Bhavan and met with external affairs minister S Jaishankar.
This marks Muizzu's second visit to India this year, following his attendance at Prime Minister Modi's swearing-in ceremony in June.

Elaborating on the Indian government's decision to provide financial assistance to Maldives' struggling economy, foreign secretary Vikram Misri said: "In so far as the currency swap agreement is concerned, this is an agreement that has two elements to it. There is the element to allow Maldives to avail a $400 million window and a separate Rs 30 billion window under this. The idea is essentially to bolster Maldives' foreign exchange reserves, and that they have access to these reserves."

Misri added that India will also undertake the repairs and refit of the Maldives Coast Guard ship Huravee which is a patrol vessel that had been gifted to Maldives by the government of India a few years ago.
The Maldives Anti-Corruption Commission and the Central Bureau of Investigation of India have also inked an MoU on cooperation in preventing and combating corruption.