India, Maldives seal pact on $100 million credit line for infra projects

India continues to support the long-term development and progress of Maldives as both countries exchanged an agreement for USD 100 million Line of Credit (LoC) on Sunday to assist and facilitate ongoing key infrastructure projects in the island nation.

India also handed over a speed launch to the Maldives Correctional Services under Indian grant assistance as Foreign Secretary Vinay Kwatra, currently on a three-day visit to Male, reviewed the entire spectrum of India-Maldives cooperation with his counterpart Ahmed Latheef.

Prime Minister Narendra Modi had announced an offer of a new Government of India Line of Credit of USD 100 million to finance infrastructure projects in the Maldives during the visit of President Ibrahim Mohamed Solih to India in early August, this year.

India-Maldives development partnership has witnessed rapid growth in recent years and covers large infrastructure projects, community-level grant projects, and capacity-building programmes that are based purely on the requirements of the Maldives.

The largest landmark infrastructure project in the Maldives – the USD 500 million Greater Male Connectivity Project – is also being built under the grant and concessional loan support from India.

Both sides also positively assessed the robust growth in bilateral ties and discussed ways to further build on the momentum.

Thanking New Delhi for the vessel procured under Indian Grant Assistance which will greatly assist Correctional Officers in serving the Maldivian community, Latheef said that the relationship between both countries continues to grow stronger and deeper, setting the stage for more intense discussions on a diverse range of issues of mutual interest.

“The impacts of these projects are profound and meaningful, as they contribute and serve to keep our community constantly developing and thriving,” tweeted the Foreign Minister of Maldives.

Earlier in the day, the Indian Foreign Secretary also called on Solih at the President’s Office.

At the meeting, Kwatra emphasised that the Maldives’ response to the Covid-19 pandemic was exemplary as the country has nearly restored its economy to pre-pandemic levels.

He also stated that the Maldives is one of the most important regional partners and that India would continue to support numerous developmental projects in the Maldives.

President Solih stated that India has consistently proven to be the closest friend of the Maldives and conveyed his gratitude to the Indian government for its continued support and assistance to the country.

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