India Ready to Give Maldives Aid as Sukuk Default Risk Looms
- Maldives president likely to visit India in coming weeks
- Nation struggling to deal with its external debt obligations
Maldives President Mohamed Muizzu
Photographer: Justin Solomon/BloombergThis article is for subscribers only.
India’s government is ready to offer the Maldives emergency financial support to help ease the island nation’s financial woes as risks of the first sukuk default loom, people familiar with the matter said.
The Maldives can immediately tap $400 million available under the Reserve Bank of India’s currency swap program that’s open to regional countries, Indian officials said, asking not to be identified before a final decision is made. The country can also seek long-term loans under a $800 million line of credit extended to the government in 2019, the people said.