India, Maldives ink Currency swap agreement, to initiate talks on FTA

 

 

 

SEEKING to strengthen bilateral ties, India and the Maldives on Monday inked a currency swap agreement, a move that would help the archipelago nation overcome foreign exchange reserve issues. Prime Minister Narendra Modi and visiting Maldivian President Mohamed Muizzu also launched Rupay card in the Maldives, inaugurated the new runway at the Hanimadhoo International airport and agreed to further strengthen bilateral relations that had hit a rocky patch last year. India, Maldives ink... Muizzu, who is on a four-day state visit, held talks with Prime Minister Modi at the Hyderabad House here. After the talks, India also handed over 700 social housing units to the Maldives built under the EXIM Bank’s buyer’s credit facilities. “Today, we have inaugurated the redeveloped Hanimaadhoo Airport. Now, the Greater Male Connectivity Project will also be expedited.

 

We will also support the development of a new commercial port in Thilafushi,” Modi told reporters here with Muizzu by his side. Modi said India and Maldives have decided to initiate discussion on the Free Trade Agreement to further strengthen economic ties. The Prime Minister also announced a USD 400 million support to the island nation and the two sides inked a currency swap agreement to the tune of Rs 3,000 crore -- moves that would be instrumental in tackling its ongoing financial challenges. The Prime Minister described Maldives as a “close friend” which had an important position in India’s neighbourhood policy and SAGAR vision. “India has always fulfilled the responsibilities of a neighbour. Today, we have taken up the vision of a comprehensive economic and maritime security partnership to give our mutual cooperation a strategic direction,” Modi said Earlier, Muizzu was accorded a ceremonial welcome at the Rashtrapati Bhawan by President Droupadi Murmu and PM modi.