Maldives seeks to roll over USD 150 million debt owed to India

May 12, 2024, 7:07 AM
Foreign Minister Moosa Zameer and Indian External Affairs Minister Dr. Subrahmanyam Jaishankar. -- Photo: Foreign MInistry

Foreign Minister Moosa Zameer and Indian External Affairs Minister Dr. Subrahmanyam Jaishankar. -- Photo: Foreign MInistry

Foreign Minister Moosa Zameer requested the rollover of a USD 150 million debt owed to India during his official visit to New Delhi last week.

Speaking at a press conference at the President's Office yesterday, Zameer said the Indian government was asked to extend the repayment period of USD 150 million owed from USD 200 million loaned as budget support in 2019.

The Maldives government repaid USD 50 from the USD 200 loan in January this year, the minister said. The Indian government did not ask for anything in return for rolling over the debt, Zameer said.

"The External Affairs Minister talked about always considering the needs of the Maldives positively and gave assurances of always providing assistance that we need in major matters and said that they had done what we needed in the past. So he gave us a green signal in one-on-one [talks] as well," Zameer said.

The government has been working towards debt relief or easier repayment options in talks with creditors, Zameer said, noting a twofold increase in public debt.

The government and President Dr. Mohamed Muizzu have undertaken significant efforts to seek debt relief over the past six months, Zameer said.

Former Finance Minister Ibrahim Ameer previously said that loans from India had been taken at concessional rates and would not pose any difficulty with repayment.

Zameer met Indian External Affairs Minister Dr. Subrahmanyam Jaishankar and some other officials during his official visit to India. Discussions took place during the visit on strengthening bilateral ties.

At Saturday's press conference, Zameer said there was no animosity between the Maldives and India and that relations between the two governments were very friendly.

"I don't doubt at all that we will still receive India's assistance in matters facing the Maldives," Zameer said.

He went on to heap praise on India.

"[India did] a lot of work for the independence of the Maldives as well as for the development of the Maldives. India is a country that had a huge involvement," Zameer said.

As an example, he referred to a coup attempt in 1988 by a group of Maldivians working with a terrorist organization from neighboring Sri Lanka. India was the country that provided assistance despite a number of other countries that could have helped, he said.

After lauding India, the minister spoke about the warm welcome he was accorded during his recent visit to New Delhi.

"So we have a very close relationship with India. God willing, we won't shape government policies in a way that would weaken these ties," Zameer said.

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