India extends $1.4 billion assistance to Maldives |ForumIAS

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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.