India announces USD 250 million financial support for Maldives

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Ritika Pathak

, COVID-19, India, News

India has announced USD 250 million support to the Maldives through a soft loan arrangement. It was announced by the External Affairs Minister Dr S Jaishankar.

India has announced USD 250 million support to the Maldives through a soft loan arrangement. It was announced by the External Affairs Minister Dr S Jaishankar.

The assistance will shore up liquidity, ease exchange rate fluctuations and provide the much-needed budgetary support to the government of Maldives to mitigate the impact of the economic crisis caused by COVID-19.

Last month, New Delhi said that it will soon announce a “substantial financial assistance package” for Maldivian economy which will help the country in post-COVID economic recovery.

This was stated during an announcement shared via the Indian High Commission in the Maldives on the occasion Maldivian Independence Day that was celebrated on 26th July. The message from the Indian mission said, “Ours is an all-weather friendship steeped in history and with a glorious future” and “India first policy of Maldives and Neighbourhood first policy of India has set the foundation of the growing relationship.”

India has already extended the assistance of USD 400 million through the extended currency swap arrangement that will help the Indian ocean Island country tide over the liquidity crisis.

New Delhi has also provided 6.2 tonnes of essential medicines under Operation Sanjeevani and 600 tons of essential food items to the country amidst COVID-19 pandemic.

 

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