President Mohamed Muizzu
by: srmayaPosted on:

President Mohamed Muizzu – First state visit to India

Here are the key points from the visit of Maldives President Mohamed Muizzu to India in October 2024:

President Mohamed Muizzu
  1. State Visit and Economic Challenges:
  • Maldives President Mohamed Muizzu arrived in Delhi on October 6, 2024, for a four-day State Visit.
  • He is expected to meet Indian Prime Minister Narendra Modi on October 7, 2024, to discuss economic support amid a looming financial crisis in the Maldives.
  • The Maldives is facing rising external debt (debt-to-GDP ratio around 110%), low foreign exchange reserves (approximately $440 million), and an upcoming debt repayment of $25 million towards its $500 million Sukuk on October 8, 2024.
  1. Request for Support:
  • President Muizzu expressed hope that India would provide economic assistance, including currency swap arrangements and debt support, during bilateral talks.
  • In an interview, Muizzu noted that India is aware of the Maldives’ fiscal challenges and has been a significant development partner.
  • India had earlier announced the State Bank of India would subscribe to $50 million worth of Maldivian government bonds to avert the country’s immediate financial crisis.
  1. Debt Situation:
  • The Maldives has about $114 million due this year and $1.5 billion due in the next two years.
  • China, a major creditor to the Maldives, has deferred loan repayments by five years.
  • Moody’s and Fitch have downgraded the Maldives’ credit ratings, with concerns of a potential default.
  1. Bilateral Relations:
  • The talks are expected to result in MoUs on infrastructure, security cooperation, and other fields.
  • External Affairs Minister S. Jaishankar emphasized that the visit would provide fresh momentum to India-Maldives relations, which have been improving after a period of tension.
  • The two countries had strained relations in the past year due to the Maldives’ “India Out” campaign, led by Muizzu, which demanded the withdrawal of Indian military personnel from the Maldives. These tensions have since eased.
  1. President’s Itinerary:
  • After the talks in Delhi, President Muizzu is scheduled to visit Agra, Mumbai, and Bengaluru as part of his four-day visit.

This visit is seen as a turning point in relations between the two nations, with a focus on stabilizing the Maldives’ economy through Indian support.