India has announced $250 million dollar support to the Maldives through a soft loan arrangement. It was announced by India's external affairs minister Dr. S Jaishankar.
The assistance will shore up liquidity, ease exchange rate fluctuations and provide the needed budgetary support to the Govt of Maldives to mitigate the impact of the economic crisis caused by COVID-19
Last month New Delhi said it will soon announce "substantial financial assistance package" for the Maldivian economy which will help the country in post-COVID economic recovery.
This was stated during a message from the Indian high commission in the Maldives on the occasion Maldivian Independence Day that will be celebrated on July 26. The message from the Indian mission said, "Ours is an all-weather friendship steeped in history and with a glorious future" and "India first policy of Maldives and Neighbourhood first policy of India has set the foundation of the growing relationship"
India has already extended the assistance of $400 million through extended Currency swap arrangement that will help the Indian ocean Island country tide over liquidity crisis. New Delhi has also provided 6.2 tonnes of essential medicines under Operation Sanjeevani and 600 tons of essential food items to the country amidst the COVID-19 pandemic.
