India on Friday announced a Rs 4,850 crore line of credit for the Maldives and agreed to finalise a free trade deal soon, with Prime Minister Narendra Modi emphasising that New Delhi is proud to be the “most trusted” friend of the Indian Ocean archipelago.
New Delhi also decided to reduce the Maldives’ annual debt repayment obligations by 40 per cent (from USD 51 million to 29 million), seen as a significant move to help the country deal with its economic woes. These measures were announced after PM Modi held extensive talks with Maldivian President Mohamed Muizzu that focused on deepening bilateral cooperation in a range of areas, including trade, defence and maritime security.
