Malé, Maldives – Maldives’ independence has been mortgaged, said Kendhoo MP Ali Hussain referring to India’s USD 100 million loan to Maldives as budget support.
Ali said this is a world of debt and debt is taken to pay off previous debts and that the the new debt was being taken out again to pay off the T-bill through another T-bill.
“The independence of Maldives is mortgaged,” Ali said.
According to India, the financial assistance of USD 100 million budgetary support was given to tide over the difficult economic situation in the Maldives.
The request for the USD 100 million budgetary support followed discussions held between President Ibrahim Mohamed Solih and Prime Minister Narendra Modi, during the former’s visit to India in August 2022.
While Government of India has provided a sovereign guarantee to SBI, the budgetary support of USD 100 million is extended without conditions and the Government of Maldives is at liberty to use the money in repairing the domestic economic situation in line with its own priorities.