Any credit facility agreement with India will not worsen Maldives’ debt situation and that the government will ensure this through proper planning, Finance Minister Ibrahim Ameer has said.

Minister Ameer said this while speaking to the press in New Delhi, India. Ameer said that India’s Exim Bank had facilitated the credit after evaluation of ongoing and planned projects.

Ameer said that USD 800 million in credit from India will be used for development projects in the Maldives, and that it carries an interest rate of just 1.5 percent.

India announced intentions to provide a USD 1.4 billion credit facility to the Maldives on Monday.

Indian Prime Minister Narendra Modi himself announced this during an address alongside President Ibrahim Mohamed Solih, as part of the latter's ongoing trip to the country.

More information on the matter is yet to be revealed, although the governments of India and the Maldives signed a total of four agreements at the Hyderabad House.