Maldives President Muizzu Thanks India For Debt Relief, Hopes For Free Trade Agreement

Maldives President Mohamed Muizzu thanked India for its support in easing the island nation’s debt repayment and expressed hope for stronger ties, including a potential free trade agreement. Muizzu made these remarks during the official Independence Day function in the Maldives on Friday. In his address, he praised his administration’s foreign policy, celebrating eight months of “diplomatic success,” according to the Maldives President’s Office.

President Muizzu expressed gratitude to both India and China for their support in easing the Maldives’ debt repayment, which has helped ensure the country’s economic sovereignty. He emphasized the need to alleviate local shortages of US dollars and mentioned that the Maldives government is negotiating currency swap agreements with both New Delhi and Beijing.

The Maldives President also announced that his administration is negotiating a Free Trade Agreement (FTA) with the United Kingdom and hopes to reach a similar agreement with India.

Relations between India and the Maldives had soured in recent years, leading to a diplomatic row. However, the Muizzu government has taken a more conciliatory tone since coming to power. Last month, President Muizzu attended the oath ceremony of Prime Minister Narendra Modi, who took office for the third consecutive term.

Earlier this year, Muizzu sought debt relief measures for the hefty loans taken by the Maldives from various governments. He emphasized that India remains the Maldives’ “closest ally” and stressed that there is no question about it. By the end of last year, the loan amount owed by the Maldives to India stood at 6.2 billion Maldivian Rufiyaa, according to Maldives-based The Edition.

The International Monetary Fund (IMF) warned earlier this year that the Maldives faces a high risk of debt distress without significant policy changes. President Muizzu has previously displayed ‘anti-India’ rhetoric and even ran his electoral campaign on the ‘India Out’ platform, which called for the removal of Indian troops from the country. Since taking office, Muizzu has taken steps that are unconventional from the perspective of India-Maldives relations. For instance, he departed from the long-standing tradition of visiting India on his first official visit and instead went to Turkey, followed by China, where the two countries elevated their ties to a comprehensive strategic cooperative partnership and signed around 20 agreements.

Last December, the Maldives announced it would not renew the Hydrographic Survey agreement with India. The Muizzu government officially requested India to withdraw its troops, leading to the establishment of a High-Level Core Group by the Indian government to discuss the matter. The withdrawal of Indian troops was completed in May this year. Shortly after the withdrawal, Maldives Defence Minister Ghassan Maumoon acknowledged that the country’s defense forces were capable of operating the three aircraft donated by India.

The diplomatic row between New Delhi and Male intensified after three Maldivian deputy ministers made derogatory comments about Prime Minister Narendra Modi over his pictures from a visit to Lakshadweep. PM Modi had called for the Indian island cluster to be developed as a destination for beach tourism and the promotion of domestic tourism. The issue escalated into a major diplomatic row, with New Delhi summoning the Maldivian envoy and lodging a strong protest against the viral posts. The three deputy ministers were suspended and remain under suspension with pay.

Data from the Maldives Tourism Ministry earlier this year showed that the number of Indian tourists visiting the Maldives dropped by 33 percent compared to last year.

(With ANI Inputs)

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