Maldives President Mohammed Muizzu meeting PM Modi. (file)
– Photo: ANI
Expansion
The struggling Maldivian government hopes to get a bigger share of foreign financial aid in 2025. Out of this, it is expected to get 72 percent of the total foreign aid (about 1.6 billion Maldivian Rufiyaa i.e. 8.76 billion rupees) from India.
According to the report of news portal Ahadhu.com, this is part of the proposed budget for 2025 of President Mohammed Muizzu's government presented in the parliament of the island nation on Thursday. In this proposed budget, the government led by President Muizzu has estimated to receive a total of 2.25 billion Maldivian Rufiyaa (MVR) i.e. Rs 12.32 billion as international grant assistance.
Expectations from China, Japan, Pakistan, Saudi Arabia and Netherlands also
India's help is most important in this budget of Maldives government, because it is expected to get about 22 percent help (total Rs 2.74 billion) from the second largest ally China. Apart from this, other countries like Japan, Pakistan, Saudi Arabia and Netherlands will also provide minor financial assistance. There is also a possibility of getting help of about Rs 1.84 billion from international organizations. India has initiated major projects in the last five years to build the infrastructure of Maldives.
India has given relief to Maldives in repayment of loan
India has provided substantial economic assistance to Maldives in recent times. During the recent visit of Maldivian President Mohammed Muizzu to India, India announced additional assistance worth Rs 33.62 billion and the two sides also signed a currency swap agreement worth Rs 3,000 crore. Under this, Maldives can use large amount of money in Indian currency if needed. Additionally, India extended the repayment period of an earlier loan of Rs 8.40 billion by one year. Maldives had to repay this loan in May and September.
- India has always been helping Maldives. In August 2022, India provided financial assistance of more than $250 million to Maldives. After this, in November 2022, India has given additional financial assistance of US $ 100 million.
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