I will briefly explain that recently Maldivian President Mohamed Muizzu has voted with deep appreciation to India and China which are credited for providing support to the Maldives’ economy which is rather shaky. In a democracy day speech to commemorate the independence of Maldives that was celebrating the 59th independence anniversary from the rule of Britain, President Muizz hence stressed the importance of a bailout by these two world powers from the Malay debt crunch.
China and India have been very crucial in the provision of assistance especially in the area of debt by remitting most of the Maldives’ debt. President Muizzu said China has offered to reschedule its loan by five years – a development that was welcome by the country. By doing so, it can prevent a scenario close to Sri Lanka’s debt default situation in the near future. The country on the other hand that has been generous to Maldives with its financial help is India which has disbursed ₹400 crore in assistance, besides it’s engaged in debt rescheduling of Maldives.
The Maldives’ governance is also pursuing further economic diversification, meaning such endeavours as, for instance, the free trade with China starting from September. Sccoding to this agreement, tariffs of close to 7897 goods, including the main fisheries products, will be eradicated. Negotiations with India, Turkey, and Britain are underway in a bid to attain similar accords that would positively impact Maldives’ trade.
President Muizzu underlined that all these measures are critical to securing the country’s economic independence and the sustainable further development of the Maldives economy. The intercalation with both these nations enshrine the strategic significance of the nation and the commitment to maintain friendly relations with other prominent international players.