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Delhi offers $1.4 bn aid package to Male

Friend at hand:Ibrahim Mohamed Solih, left, being greeted by Ram Nath Kovind and Narendra Modi, right.R.V. MoorthyThe Hindu  

India on Monday declared a financial package of $1.4 billion for the Maldives. The plan was being prepared over the last month and was formally declared at the press conference attended by President Ibrahim Mohamed Solih of the Maldives and Prime Minister Narendra Modi. Both sides also agreed to coordinate maritime policing activities in the Indian Ocean region.

Announcing the financial package, Mr Modi said both sides are connected by mutual faith in democracy and development.

“Cooperation between our countries is necessary for maintaining stability in the Indian Ocean region and we are willing to take our relationship to its fullest potential,” said Mr. Modi, conveying his best wishes for the ambitious development plans for the Maldives.

The financial assistance will be in the form of budgetary support, currency swap and concessional lines of credit for development programmes. The package comes as Maldives is facing a debt of $3.2 billion with China. It is expected to boost Male’s global financial standing.

Mr. Modi conveyed that India will support the Maldives in its human-centric development plans. Both sides agreed to increase bilateral cooperation on countering piracy, and terrorism.