Muizzu arrived here on Sunday evening on a four-day visit
Standing alongside President Mohamed Muizzu, Prime Minister Narendra Modi on Monday announced that India has rolled over USD 100 million worth of treasury bills of the island nation and agreed to sign a USD 400 million currency swap deal.
Modi made this announcement during Muizzu’s first visit to the country during which talks on a possible Male consulate in Bengaluru and a free trade agreement were also held. Earlier today, Modi and Muizzu held extensive discussions on strengthening bilateral ties that are emerging after hitting a rocky patch last year.
‘Nearest neighbour and close friend’
“First of all, I extend a hearty welcome to President Muizzu and his delegation. India and Maldives relations are centuries old. India is Maldives’ nearest neighbour and close friend. Maldives holds an important position in our neighbourhood policy and SAGAR vision,” Modi said.
#WATCH | Delhi: Prime Minister Narendra Modi says, “First of all, I extend a hearty welcome to President Muizzu and his delegation. India and Maldives relations are centuries old. India is Maldives’ nearest neighbour and close friend. Maldives holds an important position in our… pic.twitter.com/gZ7M8dttj3— ANI (@ANI) October 7, 2024
‘As per the needs of Maldives’
“India has always played the role of first responder for Maldives…India has always fulfilled the responsibilities of a neighbour. Today, we have taken up the vision of a comprehensive economic and maritime security partnership to give our mutual cooperation a strategic direction,” he added.
Addressing the presser here, the prime minister said development partnership is an important pillar of India-Maldives ties. “We have always given preference to the priorities of the people of Maldives. This year, SBI did a rollover of 100 million dollars of the Treasury Bench of Maldives. As per the needs of the Maldives, a USD 400 million currency swap agreement was also signed,” he added.
What Is A Currency Swap Agreement?
This currency swap deal comes amid mounting economic troubles in Maldives. A foreign currency swap is an agreement between two foreign parties to swap interest payments on a loan made in one currency for interest payments on a loan made in another currency. This latest deal is likely to help Maldives deal with its ballooning foreign debt.
After holding talks with Modi, Muizzu said, “India is a key partner in the socio-economic and infrastructure development of Maldives and has stood by Maldives during our times of need. I would like to thank PM Modi, the government and the people of India for the generous assistance and cooperation extended to the Maldives over the years.”
“We look forward to concluding the Free Trade Agreement with India which will enable us to harness the full economic potential between our countries and to increase Indian investments in both our tourism and various sectors of development,” he added. While urging Indian tourists to visit Maldives, Muizzu also invited PM Modi for a state visit.
Take a look at the list of outcomes of the visit: pic.twitter.com/LACeI9xdlG— Randhir Jaiswal (@MEAIndia) October 7, 2024
‘Four-day visit’
Muizzu arrived here on Sunday evening on a four-day visit. “Taking forward India-Maldives special ties! PM @narendramodi warmly received President @MMuizzu of Maldives as the latter arrived at Hyderabad House. Extensive discussions on India-Maldives bilateral relations lie ahead,” External Affairs Ministry spokesman Randhir Jaiswal said in a post on X.
Earlier, Muizzu was accorded a ceremonial welcome at the Rashtrapati Bhawan by President Droupadi Murmu. Prime Minister Modi was also present on the occasion. Muizzu was given a tri-services guard of honour before he drove down to Rajghat to offer his respects at the memorial to Mahatma Gandhi.
This is Muizzu’s first state visit to India since assuming office in November last year. He had visited Delhi in June for the swearing-in ceremony of Prime Minister Modi’s third term in office. The ties between India and the Maldives came under severe strain since Muizzu, known for his pro-China leanings, took charge of the top office in November.
Muizzu won the presidential election last year on the ‘India out’ campaign and asked New Delhi to withdraw its military personnel posted in the archipelago nation by May this year. The bilateral ties also hit a rocky patch when Maldivian ministers were critical of Modi. However, Muizzu has since toned down his anti-India stance and even sacked ministers who were critical of the Indian prime minister. As the Maldives was grappling with a serious economic downturn, India has decided to extend vital budgetary support to the Maldives government.
