A standby credit facility of $100million to help Maldives

Among many new initiatives, India announces $100 million credit for Maldives. It is a standby credit facility of $100 million to help Maldives. Maldives is strategically important to India. India will enhance capacity of Maldivian security forces. These decisions were taken during India’s PM Manmohan Singh’s visit to Male and his talks with Maldivian President Nasheed at Male.

China has been making rapid inroads into Indian Ocean through various ties with many countries. Maldives and India is facing the same problem of piracy and terrorism. Two sides decide to make a coordinated approach to these problems, to make aerial surveillance, systematic exchange of information, and to develop an effective legal frame work against piracy and terrorism.

The seventeenth SAARC summit is currently going on at Male. Indian PM Dr. Manmohan Singh becomes the first foreign head of government to address People’s Majlis, then parliament of Maldives in the entire history of Maldives. India and Maldives signed six agreements. The most important framework accord of development is in cooperation and pact under which India will extend standby facility of $100 million help to stabilize Maldivian financial conditions.