India announces $100 mn credit facility to Maldives

Prime Minister Manmohan Singh today announced a $100 million Standby Credit Facility to Maldives and a number of other key initiatives, including building the capacity of Maldivian security forces, boosting India's ties with this strategic island nation.

The crucial decisions, taken during talks between Singh and Maldivian President Mohamed Nasheed here, assume significance as these reflect India's growing outreach towards the tiny island nation in the Indian Ocean amidst attempts by China to make inroads rapidly in the region.

Recognising the common threat from terrorism and piracy, the two sides decided to undertake coordinated patrolling and aerial surveillance, exchange information and develop an effective legal framework against these.

Singh, who was here primarily for the 17th SAARC Summit, was accorded a rare honour when he addressed the 'People's Majlis' (Maldivian Parliament), becoming the first foreign head of government or State to do so in its history of 78 years.

The two sides signed six agreements, including a historic framework accord on development cooperation and a pact under which India will extend a Standby Credit Facility of $100 million to help stabilise Maldivian fiscal position.

The new Standby Credit Agreement would significantly enhance infrastructure and capacities in Maldives.

The Framework Agreement on Cooperation for Development is a blue print for cooperation in areas such as trade and investment, food security, fisheries development, tourism, transportation, information technology, new and renewable energy, communications and enhancing connectivity by air and sea.