India grants ₹4,850 crore line of credit to Maldives

India has signed a Memorandum of Understanding (MoU) to extend a Rs 4,850 crore line of credit to the Maldives, continuing its long-standing tradition of supporting the developmental needs of the South Asian nation, the Ministry of External Affairs (MEA) said on Friday.

The announcement came after a bilateral meeting between Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu during PM Modi's two-day visit to the Maldives as the Guest of Honour for the country's 60th Independence Day celebrations.

Foreign Secretary Vikram Misri, addressing a press briefing, said that this will be the first line of credit extended to the Maldives denominated in Indian rupees, replacing the earlier dollar-denominated credit.

"We have signed an MoU related to the extension of a fresh line of credit, of Rs 4850 crore to the Maldives. This is the first Line of Credit (LoC) extended to the Maldives that is denominated in Indian rupees. The Line of Credit (LoC) represents a continuation of the tradition of assistance to the development needs of the Maldives, and we expect that several infrastructure projects will be carried out as a result of this Line of Credit (LoC) agreement, benefiting the lives of citizens here in the Maldives," Misri said.

He added that the two sides also signed a mandatory agreement to amend the existing dollar line of credit between India and the Maldives.