Additional US$ 25 million fiscal support from India to Maldives

During the visit of Prime Minister of India Dr. Manmohan Singh to Maldives in November 2011, the Government of the Republic of India and Government of the Republic of Maldives signed an agreement wherein the Indian government agreed to extend a US$ 100 million credit facility to Maldives to be operated through the State Bank of India.

From the said credit facility, US$ 50 million was earmarked for import of goods & services from India and the other US$ 50 million to be utilized as deemed appropriate by the Government of Maldives. Accordingly, Government of India released a sum of US$ 50 million in two installments of US$ 30 million in 2011 and another US$ 20 million on 27^thFebruary 2012 directly to the Government of Maldives. 

Further to the recent request received from the Government of Maldives to seek an additional US$ 25 million as fiscal support for Maldives from the credit facility, the Government of India has agreed to provide the same. Accordingly, the addendum to amend the Agreement on the US$ 100 million Standby Credit facility was signed today at the High Commission of India in Male by the Indian High Commissioner Dnyaneshwar M.Mulay and Minister of Finance & Treasury Abdulla Jihad. The additional Indian fiscal support to the Government of Maldives is expected to be made available shortly.