Maldives estimates securing MVR 1.6 bn foreign aid from India in 2025

In the proposed budget, President Mohamed Muizzu-led administration projected a total of Maldivian Rufiyaa 2.25 billion as international grant

“The Maldivian government has estimated that India will provide MVR 1.6 billion in grant in aid to the archipelago nation in 2025, constituting 72% of the total foreign aid it will receive from friendly countries,” according to media reports.

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The estimates were made in the proposed State Budget 2025 submitted to the Parliament on Thursday (October 31, 2024), news portal Adhadhu.com reported.

In the proposed budget, President Mohamed Muizzu-led administration projected a total of Maldivian Rufiyaa (MVR) 2.25 billion as international grant in aid. Of this, India is expected to provide 72%, amounting to MVR 1.6 billion (approximately $104 million).

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“China will provide the archipelago nation MVR 502 million, 22% of projected free aid,” the report said.

The Maldivian government expects to receive free aid from other friendly nations such as Japan, Pakistan, Saudi Arabia and the Netherlands. According to the proposed budget, around MVR 336 million will be received as free aid from international organisations.

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“India has provided “substantial” financial help to the Maldives this year,” the report said.  During Muizzu’s state visit to India last month, New Delhi announced a $400 million support to the island nation. The two sides also inked a currency swap agreement to the tune of ₹3,000 crore.

Earlier this year, India came to the assistance of the Maldives by agreeing to rollover the Treasury Bills subscribed by the State Bank of India amounting to $100 million in May and September for a further period of one year.

Published - November 01, 2024 04:41 pm IST