Die Malediven orientieren sich wieder an Indien, um den Schuldendruck in China zu lindern

Submission Statement:

The president of the Maldives swept into power a year ago on a campaign to push India out of the island nation’s affairs and draw closer to China. Now, as a debt crisis looms and earlier Chinese loans come due, he is in New Delhi looking to mend some fences.

TONE:
Prior to the trip, Muizzu has softened his rhetoric notably, saying he’s never opposed India and New Delhi knows the financial strain his nation is under and was willing to help

CONTRAST TO A YEAR AGO:
That’s a contrast to a year ago when he won elections on an “India Out” campaign, pushing for the withdrawal of Indian troops from the Maldives and promising new big-ticket projects backed by China. His campaign thrust the Maldives to the center of the rivalry between the two powers, which have been vying for influence over the Indian Ocean nation known for pristine beaches and its strategic location straddling global shipping routes.

RELIEF FROM INDIA:
During their meeting Monday, Modi and Muizzu discussed a potential free trade agreement, as well as ways for New Delhi to help the island nation develop infrastructure and military capacity, India’s External Affairs Ministry said. India has also extended two currency-swap agreements to the Maldives — one US-dollar agreement worth $400 million and one Indian-currency agreement worth 30 billion rupees — to shore up its access to foreign currency.

DEBT SITUATION:
The country’s debt is estimated at 110% of gross domestic product, and risks are growing it may fail to make payments on its sukuk. If that were to happen, it would be the world’s first default of an Islamic bond.
India gave the Maldives a $50 million lifeline last month to help it avoid that outcome, but that was likely only a short-term fix given additional looming payments, according to investors and analysts