India extends $1.4 billion assistance to Maldives

India extends $1.4 billion assistance to Maldives

News:

India on Monday declared a financial package of $1.4 billion for the Maldives

Important Facts:

• Announcing the financial package, Indian Prime Minister said both sides are connected by mutual faith in democracy and development.
• The financial assistance will be in the form of budgetary support, currency swap and concessional lines of credit for development programmes
• Relations between India and the Maldives deteriorated after then president Abdulla Yameen imposed emergency on February 5 this year.

Significance:

• Cooperation between both countries is necessary for maintaining stability in the Indian Ocean region.
• The package comes as Maldives is facing a debt of $3.2 billion with China. It is expected to boost Male’s global financial standing.
• This will help both countries to increase bilateral cooperation on countering piracy and terrorism.
• It will provide an opportunity to Indian companies in the Island nation.