The government of India has extended USD 150 million under the foreign currency swap support to the central bank of Maldives, Maldives Monetary Authority (MMA).

This was confirmed by the High Commission of India in Maldives, via Twitter on Tuesday.

As such, the financial assistance comes under the USD 400 million bilateral agreement signed between the two governments during July 2019. The agreement was signed by the Reserve bank of India on behalf of the neighboring country’s government.

The Indian High Commission noted that the arrangement was activated to help mitigate the financial impacts of the Novel Coronavirus (Covid-19) pandemic on the island nation.

Following the occasion, Maldives Minister of Foreign Affairs Abdulla Shahid took to Twitter as well, expressing his delight over the commencement of the bilateral currency swap agreement. He went on to express his gratitude to the Prime Minister of India Narendra Modi, and the government.

The agreement was facilitated during President Ibrahim Mohamed Solih’s State Visit to India during December 2018. USD 200 million out of the USD 1.4 billion economic package has since been extended to the government.

USD 50 million was extended to last year’s budget support and the State Bank of India also extended a subscription of USD 150 million from the treasury bank, to the Maldives central bank.

Following the economic downturn being experienced in the Maldives, President Solih had discussed the measures being implemented by both governments with PM Modi about a week back over a telephone conversation. During the conversation he also discussed the possibility of the Maldives securing additional assistance from India to contain the virus.