India increases financial assistance to Maldives

Minister of External Affairs of India, Sushma Swaraj pays a courtesy call on President Ibrahim Mohamed Solih during his state visit to India on December 17, 2018. (File Photo/President's Office)

Government of India has allocated for an increase in financial assistance to Maldives in its budget.

Indian press report India has allocated USD 55.9 million in financial aid and USD 24.4 million in loan assistance to Maldives in its budget for 2019.

India has also increased its budget for Indian Ocean countries, SAARC countries and the Bay of Bengal Initiative for Multi-Sectorial Technical and Economic Cooperation.

India, during Solih’s state visit to the country in December, 2018, agreed on a USD 1.4 billion credit facility to Maldives and signed four key documents, signaling the reinforcement of fraying ties between Maldives and India with the inauguration of new Maldivian President Ibrahim Mohamed Solih in 2018.