Ahmed Naish
Maldives President Dr. Mohamed Muizzu is expected to visit India next week as his government scrambles to avoid a disastrous debt default.
“The president is scheduled to visit India very soon. Discussions are ongoing between Maldives and India on the best date,” spokesperson Heena Waleed told the press on September 10, without providing any further details about the trip.
After ostensibly mending strained ties with the Maldives’ giant neighbor, Muizzu’s first official visit to India since assuming office last year comes with the central bank seeking a $400 million currency swap arrangement under the South Asian Association for Regional Cooperation (SAARC) framework.
The swap deal would effectively be an Indian bailout to help the Maldives make impending interest payments, and shore up dangerously depleted foreign currency reserves.
On September 11, credit ratings agency Moody’s downgraded the Maldives based on an assessment that “default risks have risen materially,” casting doubt on the country’s ability to service substantial debt obligations due over the next two years.
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