Minister of Foreign Affairs Abdulla Shahid has informed that, with the country's  budget support, India is to grant an aid package of USD 1.4 billion to Maldives.

Minister Shahid said this in an interview given on “Rajje Miadhu” news program of Public Service Media (PSM) regarding foreign aid packages granted to Maldives. He said that India is granting a package of USD 150 million as T-Bill while USD 50 million in aid.

He noted that the total of USD 1.4 Billion aid package will involve India granting a USD 800 million as a line of credit. Minister Shahid said that the interest incurred by Maldives will be paid off with this line of credit. He said that the aid is therefore basically free and added that the only amount to be paid back to India by Maldives the USD 800 million. He said that this amount is an interest-free concessional loan granted to Maldives.

The Minister of Foreign Affairs noted that this loan has been granted with great concession by India. He said that with the USD 400 million allocated as currency support will bring ease to challenges brought on due to shortage of dollars. He noted that the support of Maldives Monetary Authority (MMA) and India’s Central Bank will also aid in this.

Minister Shahid said that there is also an amount of USD 50 million to be granted by the United Arab Emirates (UAE) as budget support to Maldives. He said that the talks regarding this aid is currently ongoing. Additionally he informed that Saudi Arabia has also agreed to provide funds as budget support as well.