Mohammed Muizzu's India Visit: A Bid for Assistance Amid Maldives Economic Crisis

Sunday, 6 October 2024, 05:45

Mohammed Muizzu's India visit underscores the urgent need for a bailout as the Maldives faces a significant economic crisis. With foreign reserves plummeting, Muizzu is set to meet with PM Modi to seek financial aid. This five-day trip highlights the delicate diplomatic balance between the Maldives and India.
Indiatoday
Mohammed Muizzu's India Visit: A Bid for Assistance Amid Maldives Economic Crisis

Seeking Financial Aid During a Crisis

Maldivian President Mohammed Muizzu has touched down in New Delhi as part of a five-day visit, aiming to secure a bailout from India amid his country’s worsening economic crisis. The Maldives is grappling with dwindling foreign exchange reserves, currently at a precarious $440 million, which is barely enough to cover six weeks of essential imports.

Talks with PM Modi

Muizzu plans to meet with PM Modi to discuss international and regional cooperation, putting the spotlight on the Maldives’ dire fiscal situation. In a recent interview, he expressed optimism that India, as a major development partner, would assist in easing the fiscal strain.

  • India has previously extended a financial aid package totaling $1.4 billion to the Maldives.
  • Despite his anti-India campaign, Muizzu aims to improve bilateral relations.

The visit comes in the wake of a credit rating downgrade by Moody's, indicating heightened risks of default for the Maldives.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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