India's $507 million line of credit to Maldives effective August 27, cenbank says
Maldives' President Mohamed Muizzu shakes hands with Indian Prime Minister Narendra Modi at Hyderabad House, New Delhi, India, October 7, 2024. REUTERS/Adnan Abidi
Sept 23 : India government-backed 48.50 billion rupees ($506.58 million) line of credit to the Maldives became effective on August 27, 2026, the Reserve Bank of India said on Wednesday, paving the way for individual project-level credit agreements under the facility.
Here are some details:
• The RBI said that the facility will be deployed through individual credit agreements with minimum value of 5 billion rupees each
• Under the agreement, at least 75 per cent of the value of goods, works and services under contracts financed through the facility must be supplied by sellers from India, while the remaining 25 per cent may be sourced from outside India.
• The regulator said the line of credit cannot be used to pay agency commissions on exports, adding that exporters can use their own funds for such payments.
• India had agreed to provide line of credit to the Maldives in July 2025 via the Export-Import Bank to finance various developmental projects in the country.
($1 = 95.7400 Indian rupees)
