Last Updated on 29/07/2024 by wccexam Desk
Maldives President Mohammad Muizzu, who came to power through an anti-India campaign, has now realized the importance of India. Muizzu has thanked India for the financial help given to debt-ridden Maldives. He has thanked both India and China together for helping strengthen the country’s weak economy. Maldives is facing a huge debt crisis and both India and China are helping it to overcome it.
Speaking at an official function organised on the country’s 59th Independence Day on July 26, President Muizzu said that China and India have helped the most in repaying the country’s debt.
According to Maldives news portal ‘Adhadhu.com’, Muizzu said at the event, ‘On behalf of the people of Maldives, I thank the Chinese government and the Indian government for their cooperation in maintaining our economic sovereignty and in strengthening the economy.’
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Muizzu’s relations with India and China
Muizzu came to power last year by running an anti-India campaign. He had promised that if he came to power, he would send back the approximately 80 Indian soldiers present in the island country. These Indian soldiers used to operate HAL Dhruv helicopters and Dornier aircraft given to Maldives by India which are used for humanitarian aid.
Muizzu fulfilled his promise to send back Indian troops as soon as he came to power and by June 10 this year, all Indian troops had returned. However, India managed to send a team of technical experts to Maldives in their place.
Muizzu, who is considered pro-China, has strengthened Maldives’ relations with China since coming to power. Earlier this year, Muizzu visited China during which the two countries elevated their relations to a comprehensive strategic partnership and signed 20 agreements. This also included a military assistance agreement with China, which caused discomfort in India.
During his visit to China, Muizzu also allowed Chinese ships to dock in Maldives’ maritime area. Last year, Sri Lanka had banned foreign ships from docking in its maritime area, which upset China and it has taken the help of Maldives.
How did anti-India Muizzu’s tone change?
India-Maldives relations have seen a bitter end in recent months after the dispute over the withdrawal of Indian troops. On June 9, Muizzu came to India to attend the swearing-in ceremony of Prime Minister Narendra Modi. He thanked India for the help of Rs 400 crore and demanded that India restructure the debt given to Maldives.
A major change in Muizzu’s policy towards India came when in May this year, the International Monetary Fund (IMF) warned Maldives that if it did not make major policy changes, it could face a debt crisis.
The IMF said Maldives’ current account deficit is likely to remain high and its overall fiscal deficit and government debt are also expected to be high.
After this, the Muizzu government demanded debt restructuring from China. China has reportedly given a loan of more than $ 1.3 billion to Maldives, which Maldives expressed its inability to repay and demanded restructuring. China had initially objected to this demand of Maldives. But Muizzu said in the meeting on 26 July that China has now given Maldives a grace period of five years to repay the loan.