Maldives President Muizzu requests debt relief from India following the demand for the withdrawal of military personnel

Following his previous anti-India remarks, Maldives President Mohamed Muizzu has adopted a more conciliatory approach, affirming India’s status as his country’s closest ally. He appealed to New Delhi for debt relief for the archipelago nation, which owes around USD 400.9 million to India.

Since assuming office as president in November last year, Muizzu, known for his pro-China stance, initially took a tough stance toward India, demanding the repatriation of Indian military personnel operating three aviation platforms from his country by May 10.

In his inaugural interview with local media since taking office, Muizzu acknowledged India’s significant role in aiding the Maldives, highlighting its extensive project implementations. He affirmed India’s continued status as the Maldives’ top ally, emphasizing its unwavering support. This information was reported by the Maldives news portal Edition.mv, which provided excerpts from Muizzu’s interview to its Dhivehi language counterpart Mihaaru.

Muizzu’s positive remarks about India followed the departure of the initial group of Indian military personnel from the Maldives, in accordance with his earlier request. By May 10, Muizzu had asked for the complete withdrawal of all 88 military personnel stationed at the three Indian aviation platforms. Over the past few years, India has been offering humanitarian aid and medical evacuation assistance to Maldivians, utilizing two helicopters and a Dornier aircraft.

Due to its close proximity to India, merely 70 nautical miles from Minicoy Island in Lakshadweep and 300 nautical miles from the western coast of mainland India, the Maldives holds considerable strategic significance, situated at the nexus of key commercial sea routes in the Indian Ocean Region (IOR). Muizzu stressed during the interview the importance for India to consider providing debt relief to the Maldives, given the substantial loans acquired by successive administrations.

“We’ve inherited a situation with substantial loans from India. Therefore, we’re in talks to negotiate more flexible repayment terms for these loans. Rather than stopping ongoing projects, we aim to expedite them, so I don’t foresee any negative impact on Maldives-India relations,” Muizzu explained.

Muizzu’s reconciliatory stance toward India comes ahead of Maldives’ mid-April parliamentary elections. He highlighted the significant loans obtained from India, which exceed the Maldivian economy’s capacity. He’s currently in talks with the Indian government to explore manageable repayment options, as reported by the news portal.

Muizzu expressed optimism that India would assist in debt relief measures, acknowledging India’s past contributions. Under the previous administration led by pro-India leader Ibrahim Mohamed Solih, loans from the Export and Import Bank of India (Exim Bank) totaled USD 1.4 million (MVR 22 million).

Additionally, he mentioned that by the end of last year, Maldives owed India MVR 6.2 billion, which translates to approximately USD 400.9 million at the current exchange rate of 1 MVR to USD 16.

During my meeting with Prime Minister Modi in December 2023 on the sidelines of the COP28 summit in Dubai, I communicated that I had no intention of halting ongoing projects. Instead, I emphasized my commitment to strengthen and accelerate them. I proposed the establishment of a high-level committee to facilitate swift decision-making, particularly for projects like the bridge and the Hanimaadhoo Airport.

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