India announces a $100M credit line to the Maldives

NEW DELHI (AP) — India will give a $100 million line of credit to the Maldives to support development projects, Prime Minister Narendra Modi said, on Tuesday, after holding talks with his counterpart, President Ibrahim Mohamed Solih.

Solih arrived in India, on Monday, for a four-day visit. The two countries inked six agreements to boost cooperation in several areas, including disaster management, cyber security and affordable housing.

The two leaders also marked the start of construction on the Greater Male Connectivity Project, 4.2 mile long bridge and causeway funded by India that will connect the nation’s capital, Male, to three other islands.

Both stressed the importance of close ties between their two countries as vital for peace and stability in the region.

“There has been renewed vigor in the friendly ties between India and Maldives. Our closeness has increased,” Modi said, adding that despite challenges sparked by the COVID-19 pandemic, cooperation between the two countries has strengthened.

Solih said the two leaders discussed terrorism and the need to “enhance maritime safety and security in the Indian Ocean region.” Neither mentioned China, but Solih’s election, in 2018, marked a shift from his predecessor, Abdulla Yameen Abdul Gayoom, who developed close ties with Beijing in an area India considers as its backyard.

India has been concerned by Yameen’s leaning towards China, which has sought to gain more influence in the Indian Ocean. The former president had pledged support for China’s Belt and Road Initiative, with the country investing in many infrastructure projects in the Maldives.

“The Maldives will always remain a true friend of India,” Solih said, on Tuesday, adding that the relationship between the two will be “of the highest priority.”

His visit follows an announcement that he will run for re-election, in 2023.