“LINE OF CREDIT”
China and India are the two largest bilateral lenders to the Maldives, and the cash-strapped archipelago last month insisted it has no plans to seek an International Monetary Fund bailout after warnings of a possible sovereign default.
Official data showed the Maldives’ foreign debt at US$3.37 billion in the first quarter of this year, equating to around 45 per cent of gross domestic product.
Muizzu said that a “line of credit arrangement” from India was a “positive step”.
In June, Muizzu travelled to New Delhi for Modi’s inauguration following his victory in a third consecutive election, and India’s Foreign Minister Subrahmanyam Jaishankar travelled to Male in August.
Known as a luxury holiday destination with pristine white sand beaches and secluded resorts, the Maldives has also become a geopolitical hotspot.
India is apprehensive about China’s growing presence in the Indian Ocean.
Global, east-west shipping lanes pass the nation’s chain of 1,192 tiny coral islands, stretching around 800km across the equator.
India’s government has traditionally regarded the Maldives, as well as neighbouring Sri Lanka, to be within its sphere of influence.
Since coming to power, Muizzu has toned down his anti-Indian rhetoric, and has stated that he would not disrupt the regional balance by replacing Indian forces with Chinese troops.
“This historic relationship is intertwined like the roots of a tree, built on centuries of exchanges and values shared”, Muizzu said of ties between Male and New Delhi.
