On the verge of bankruptcy, maldives pinned its hopes...
President Mohammed Muizzu may pay india a visit soon, and it is said that india is getting ready to give the maldives financial assistance. The Maldivian government made this announcement. The economic crisis and external debt are putting the maldives in danger of going into default.
Even though the maldives administration hasn't formally asked india for help yet, President Mohammed Muizzu's next visit to india is probably when this will come up. A Bloomberg story states that the Reserve bank of India's (RBI) currency exchange program may provide the maldives with $400 million right away, and that further long-term loans may be requested under the expanded $800 million loan cap in 2019.
India is attempting to assist the Maldives.
According to Bloomberg, the Maldives' october payment obligation of $25 million is a component of its $500 million sukuk debt. India's foreign ministry and other pertinent authorities have not responded to inquiries on the $400 million currency swap that the maldives Monetary Authority has announced it is in talks for.
The maldives are currently dealing with even more severe economic difficulties than before. By march 2024, the nation's debt would have increased to 110% of GDP, according to the Observer Research Foundation, while its foreign exchange reserves would have decreased. The rating agency moody's recently downgraded the nation's credit rating to junk status, citing a heightened risk of default, with large repayments of foreign debt due in 2025 and 2026.
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