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India and Maldives seal pact on $100m line of credit for infrastructure projects

India continues to support the long-term development and progress of the Maldives as the two countries on Sunday exchanged an agreement for a $100 million line of credit (LOC) to aid and facilitate key infrastructure projects in courses in the island nation.

India also handed a rapid launch to Maldives Correctional Services with the help of Indian grants as Foreign Secretary Vinay Kwatra, currently on a three-day visit to Male, reviewed the full spectrum cooperation between India and the Maldives with his counterpart Ahmed Latheef.

Prime Minister Narendra Modi had announced an offer of a new $100 million Indian government line of credit to fund infrastructure projects in the Maldives during President Ibrahim Mohamed Solih’s visit to India in early August this year.

The India-Maldives Development Partnership has grown rapidly in recent years and covers large infrastructure projects, community level grant projects and capacity building programs based solely on the needs of the Maldives.

The biggest landmark infrastructure project in the Maldives – the $500 million Big Man Connectivity Project – is also being built with the grant and concessional loan from India.

The two sides also positively assessed the robust growth of bilateral relations and discussed ways to build on this momentum.

Thanking New Delhi for the vessel purchased under the Indian Grant Assistance which will greatly assist correctional officers in serving the Maldivian community, Latheef said the relationship between the two countries continues to grow stronger and deeper, opening the way for more intense discussions on a wide range of issues of common interest.

“The impacts of these projects are profound and significant as they contribute to and serve to keep our community developing and thriving,” the Maldives Foreign Minister tweeted.

Earlier in the day, India’s foreign minister also visited Solih at the president’s office.

During the meeting, Kwatra stressed that the Maldives’ response to the Covid-19 pandemic has been exemplary as the country has almost restored its economy to pre-pandemic levels.

He also said that the Maldives was one of the most important regional partners and that India would continue to support many development projects in the Maldives.

President Solih said that India has always proven itself to be the closest friend of the Maldives and expressed his gratitude to the Indian government for its continued support and assistance to the country.

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