Maldives president defends Indian assistance
President Solih dismissed the opposition’s criticism over debt and sovereignty.
19 Dec 2018, 9:00 AM
President Ibrahim Mohamed Solih defended Wednesday financial assistance of US$1.4 billion secured from India during his recent state visit, dismissing opposition criticism over debt and sovereignty.
“I want to assure the Maldivian people today that the nation will not be further indebted because of this,” Solih said in his first press briefing since assuming office last month.
The Indian assistance includes US$200 million as budget support to ease cashflow constraints, of which US$50 million was grant aid and US$150 million would be invested in treasury bills and bonds at a 1.5 percent interest rate, he said.
For the rest, India opened a line of credit up to US$800 million to finance infrastructure projects, and an existing currency swap arrangement was increased to US$400 million to shore up the foreign currency reserve.
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