India grants further US$25million to Maldives

India has granted a further US$25million to the Maldives as part of the $US100million standby credit facility agreed during last November’s official visit from Prime Minister Manmoham Singh.

Indian High Commissioner D M Mulay signed the agreement with Minister of Finance and Treasury Abdulla Jihad at the Indian High Commission, local media reported.

Mulay, who was not responding to calls at the time of press, said that the deal represented the third instalment of the credit facility, with the previous two instalments having amounted to US$50million.

The previous tranche of US$30 million was released following President Waheed’s first official visit to India in May.

Mulay is also reported to have said that the rest of the promised credit will soon be handed to the Maldivian government:  “The paperwork on the agreement is being processed now, the amount will soon be awarded to the Maldives,” Haveeru quoted Mulay.

A standby line of credit is normally forwarded to countries which have reached macroeconomic sustainability but experience short term financing issues.

The release of this credit comes just days after Waheed completed his first official state visit to China.

During this trip, Waheed finalised agreements for a US$500 million Chinese loan with the assurance of more aid available when needed.

The loans, equal to nearly one quarter of the Maldives’ GDP, are said to include $150 million (MVR2.3billion) for housing and infrastructure, with another $350million (MVR5.4billion) from the Export-Import Bank of China, reported Reuters.

Jihad told Minivan News last week that, despite securing this money from China, the government would still be considering austerity measures which are being considered in order to reduce the state’s budget deficit.

With income lower and expenditure higher than predicted, this year’s budget deficit had been forecast to reach MVR9.1billion (US$590million), equivalent to around 28 percent of nominal GDP.

India has traditionally enjoyed close ties with the Maldives, although there have been increasingly strong links between the Maldives and China, largely due to the number of Chinese tourists visiting the Indian Ocean nation.

A Chinese embassy opened in Male’ in time for the opening of the SAARC summit last November, reciprocating the opening of a Maldivian mission in Beijing in 2007.

Indian officials were reported at the time as having concern that the move was part of China’s “string of pearls” policy which supposedly involves Chinese attempts at naval expansion into the Indian Ocean.

After the awarding of the Chinese loan, however, former Foreign Minister and current UN Special Rapporteur to Iran, Dr Ahmed Shaheed was keen to play down any suggestions that the Maldives was about to significantly change its foreign policy priorities.

“This is very much in keeping with past policy. The lines so far drawn have demonstrated that the Maldives remains primarily SAARC focused, followed by trading partners in the EU and Singapore. China has moved into this second category,” he added.

“Nothing will change the fact that we are only 200 miles from Trivandrum,” said Shaheed.

When asked upon his recent return from Sri Lanka what the Maldives’ policy was regarding Sino-Indian competition in the region, President Waheed is said to have responded that the policy of a small nation like the Maldives ought to be to avoid too great an involvement in geopolitics.

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25 thoughts on “India grants further US$25million to Maldives”

  1. Maldivians hold no shame for the way they are nothing more than beggars to the international community? Mostly begging from Hindhus, Christians and Buddhists kaffirs!

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  2. All this borrowing from cow and statue worshippers is shameful.

    The Oogah Boogah Gods of India are false and we would do well to avoid being indebted to such degenerates who disbelieve in the lord of mercy.

    There are prosperous Islamic countries who would be more than happy to give us money were we but to ask them.

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  3. Look at this Country that survives on loans from other countries and boasts to revive its economy - joke of the year. Maldivians doing business are looting the country which is making it to take loans and they speak about people who want to invest here. now who is looting their own country

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  4. The country is acting like a teenager with a new credit card, Spend Spend Spend! followed by Oh No! We can't repay our debit!
    How about we figure out a way to keep so much money from leaving the country first, then the rest will be easy. I think the current government is looking to get their hands on as much money as possible before the next elections.

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  5. Guys, we are begging others. Lets be realistic.

    Beggars can't be choosers.

    When we are slaves of others, dont kid ourselves with holier than thou attitude.

    Respect Indians. Respect others. Respect their right to live as well. Respect their beliefs as well.

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  6. Give a man a fish and he will eat for a day; teach a man to fish and he will eat for a lifetime; give a man religion and he will die praying for a fish.
    Quote from Unknown

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  7. "A standby line of credit is normally forwarded to countries which have reached macroeconomic sustainability but experience short term financing issues."

    The Maldives is not facing a short term financing issue, but a rather long one. With budget deficits running into hundreds of millions of dollars each year, these "standby" credit lines will be required for the foreseeable future!

    The country does not have the means to pay back these loans. Maldives is now taking on loans to repay the interest on existing loans! That certainly is a sure-fire route to bankruptcy.

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  8. Here's a novel idea, why not get the rich resort owners to pay their taxes on time and not spread out over 100yrs. Oh dear you tried that, but they got themselves in positions of power and changed the tax laws in their favour to pocket all the profits whilst the country goes begging.

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  9. Anni told during his campaign that he will get 500 million dollars within 30 days , but he could not even get half of this amount within 3 years.

    Anni told that he can run the country with one resort , but he gave out over 400 Islands to develop Islands ?

    He told that he will reduce our debt but he managed to increase our debts from 370 million to 1000 million dollars just in 3 years.

    He told that electricity bill be

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  10. Anni told that elect city bill be reduce but within 45 days he increase the electricity prices to 300%.

    Anni told that he will now allow to go our cost of living higher but it went up by 400%.

    Anni told that people never have to beg for medical but he made doctors consultancy at a reasonable prices but to get an appointment from the doctors it takes months and then there were no medicine to purchase when Doctors gives prescription.

    These are few things to remember

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  11. This story has made me laugh soooooo much I wet myself and had to change my sari!!
    The next time you arrogant morons........that's 350,000 arrogant morons no less...........harp on about your wonderful standard of living and amazing GDP........just remember your bankrupt economy is now dependent on handouts from us cow worshipping kaffirs for sustenance.
    Why are your sunni brothers in Saudi Arabia, Yemen, Afghanistan and Pakistan not helping you in your time of need?
    Why are your sunni brothers in Saudi Arabia, Yemen, Afghanistan and Pakistan not investing in Maldives?
    The Indian government should be giving more aid to deserving countries like Bhutan and Nepal and not to ungrateful, politically unstable, drug addicted, intolerant failed states like Maldives.
    I do hope my bloody taxes don't go up as a result of this unnecessary generosity!!
    I can't believe you actually have a minister named 'Jihad'.........is there another one called 'Fatwa'?
    You Maldivians are soooooo funny..........oops I've wet myself again!!

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  12. O Yes, BMW just received 500 million from china and the assurance of more aid available when needed.

    But still need the 25 million from India.

    Better ask for that 10 dollar tip from Selvam as well.

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  13. @ MissIndia NewDelhi

    Once again, you misunderstood us by taking a few idiots in our country and expanding them to a population of 350,000 arrogant morons like a plague.

    I will repeat: NOT everyone is like you say they are. So give them a chance (if any) and stop grinding them to the mud with the rest of the rotten apples of this country.

    By the way, instead of wasting your 'precious' time on this site, prioritize on buying yourself diapers to solve your 'leaking' issues.

    Take care 😀

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  14. @Bodu Thakurufaan

    It is her business if her government is handing out money to you losers again...

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  15. Swiss Govt return the millions dollar of peoples money deposit in Swiss bank accounts by corrupted wealthy Maldives businessmen. Problem solved.

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  16. We do not have to seek handouts ..
    the only choice is to get rid of all the businessmen in the parliament and Pass a law that allows us to retain 60% of the foreign currency (Tourist Dollars) in a bank registered in the Maldives. As a country that thrives mainly in Tourism, the businesses that sell our beauty and hospitality should not hesitate to reward the country and it's people with a bit of gratitude. It will boost our economy and solve the dollar issues.

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  17. i feel the peoples in here are a frog inside the well. if a frog inside the well then the frog think he is number one in this world like this the peoples in maldives

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  18. This is bad business!

    The puppeteer would not allow Waheed to extend any more hands elsewhere!

    Also he does not have many else wheres to extend his hands to!

    He already has by leaning against a doctorate in Christianity and its spreading!

    China and India both have struck a deal and insured their returns perhaps for a long long time!

    We will be squeezed out high and dry unless some fortunate mist falls upon us!

    We are into deep hits!

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