Reports: India offers USD 1B if Maldives allows permanent deployment of military personnel

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Several Indian newspapers report the Indian government has offered Maldives USD 1 billion in low-interest loans in exchange for allowing permanent deployment of Indian military personnel in Maldives.

The reports cited sources within the Indian government who say details of a financial agreement between Maldives and India will be settled ahead of President Ibrahim Mohamed Solih’s visit to India in December.

Sources say the Indian government has stipulated that Maldives distant itself from China and allow permanent deployment of Indian military personal in Maldives in exchange for low-interest loans over several installments to settle the nation’s debts.

Indian Prime Minister Narendra Modi with Maldivian President Ibrahim Mohamed Solih at the Maldivian Presidential Inauguration on November 17, 2018. (Sun Photo/Fayaz Moosa)

The reports follow recent negotiations with the Indian government by a high-level Maldivian delegation which visited India this week – including Minister of Foreign Affairs Abdulla Shahid, Minister of Finance Ibrahim Ameer and Minister of Economic Development Fayyaz Ismail.

Some 60 Indian military personal are currently stationed in Maldives to maintain and manage two helicopters donated to Maldives by India. Former President Abdulla Yameen Abdul Gayoom’s administration asked the Indian government to take back the helicopters and cancelled the visas of the military personnel. But both the choppers and the military personnel have remained in Maldives.

A 2010 agreement stipulates India must train Maldivian military personnel to operate the helicopters, and the Indian military personnel must return to India.

Accommodation and food for the Indian military personnel stationed in Maldives is provided by the Maldivian government.



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