India loans another USD 119 million to Maldives for housing units

Exchanging letter of intent pertaining to the USD 119 million loan from India to Maldives for the purpose of developing 2,000 housing units in Hulhumalé | Photo: President's Office

New Delhi, India – The government of Maldives has decided to take up India’s offer to loan USD 119 million which will go towards developing 2,000 housing units in Hulhumalé.

The agreement was signed by President Ibrahim Mohamed Solih on his visit to India, following official meetings with Indian Prime Minister Narendra Modi. The two leaders welcomed the approval of Exim Bank of India Buyer’s Credit funding of USD 119 million for construction of another 2000 social housing units in Greater Male’ and exchange of a Letter of Intent to this effect between Exim Bank of India and the Government of Maldives.

President Solih expressed appreciation to the Government of India for the generous assistance for additional housing units.

With this, a total of 6 agreements were signed between India and Maldives today. They are:

  • Collaboration on potential fishing zone forecast capacity building
  • Cooperation in the area of cyber security
  • Capacity building of women development committees and local government authorities of Maldives
  • Cooperation in disaster management
  • USD 41 million Buyer’s Credit Agreement to construct police infrastructure
  • Letter of Intent for Buyer’s Credit financing of 2,000 social housing units

Maldives has maintained a strengthening relationship with India ever since President Solih’s administration came on to power. While India reiterates this friendship and provides assistance to the small island nation in multiple areas, some locals continue to question India’s intentions and have even created movements demanding removal of Indian military presence in India under the hashtag IndiaOut.