India approves Rs 30 billion to Maldives, financial stability of Maldives will get support under SAARC Currency Swap
the wreath India has approved the first withdrawal of Rs 30 billion under the existing economic and financial assistance to Maldives. The Indian High Commission located here gave this information. The Indian Embassy said in a statement on Thursday that the amount is being released as the first withdrawal under the SAARC currency swap framework.
According to the statement, this agreement, under the framework of the currency swap arrangement for SAARC countries, was signed between the Reserve Bank of India and the Government of Maldives during the visit of Maldives President Mohammed Muizzu to New Delhi in October 2024. The Indian High Commission said the previous drawdown of US$400 million taken by Maldives in October 2024 under this framework matured on Thursday.
According to the news of the news platform ‘Sun Online’, in a statement issued on Thursday, the Foreign Ministry of Maldives said that the disposal of this facility of $ 400 million reflects the government’s commitment to meet its financial obligations. “Since the inception of the SAARC Currency Swap Framework in 2012, the Reserve Bank of India (RBI) has provided a total support of US$ 1.1 billion to Maldives,” the statement said.
The Indian High Commission said the currency swap facility has proven to be an important factor in ensuring the financial stability of the Maldives. Last year, India had advanced the ‘Treasury Bill’ of $100 million issued by the Maldives government as emergency financial assistance on their demand.
“Maldives is an important partner under India’s ‘Neighbourhood First’ and ‘Vision Ocean’ policy,” the Indian Embassy said. As a friendly neighbour, India has always been the ‘first aid provider’ to Maldives. The South Asian Association for Regional Cooperation (SAARC) is an economic and political organization of eight countries in South Asia. These countries are India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives and Afghanistan.
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