India grants a USD 100 million loan to support Maldives economic growth.

Indian Ambassador to Maldives Munu Mahawar presented the symbolic cheque to Foreign Minister Abdulla Shahid at a ceremony held at Foreign Ministry.

Foreign Ministry said on Tuesday that the loan was agreed upon during President Solih's visit to India in August 2022. The loan will be granted through State Bank of India (SBI)'s Male' Branch by investing in a treasury bond with the Maldivian Government.

The ceremony was attended by SBI Male' Branch CEO Dorababu Daparti and Indian Ambassador Munu Mahawar. Indian External Affairs Ministry Dr. S. Jaishankar also attended the ceremony online.

Speaking at the ceremony, Jaishankar said he hopes the USD 100 million loan will ease economic challenges in the Maldives.

He noted that India's 'Neighbourhood First' policy has been successful in creating a solid partnership, and is producing positive results, especially in the face of challenges. He added that the policy is one that responds to the needs and hopes of the people in both countries.

Speaking at the ceremony, Minister Shahid said that India has always remain steadfast in their support for Maldives, and thanked Indian Prime Minister Narendra Modi for the continued support.

India has provided loans to the Maldives in the past. As such, India has provided a USD 100 million grant aid and a USD 400 million line of credit to the Maldives for the Thilamale' Bridge project. India is also working on multiple projects in the Maldives under the currency swap agreement between the two nations.