Solih calls on govt. to utilize unused USD 405M from Indian credit line for public benefit

Former president Ibrahim Mohamed Solih has called on the incumbent administration to make effective use of the remaining USD 450 million from the USD 800 million Line of Credit extended by India during the last MDP government, which remained unused at the end of his term — emphasizing that it should be utilized in ways that benefit the public.

Solih’s remarks comes while Indian Prime Minister Narendra Modi is in the Maldives for a two-day state visit.

Via a post on X, Solih said that around USD 450 million of the USD 800 million Lines of Credit extended by India during his administration between 2019 to 2023 was left unused at the end of his term.

He detailed that the unused funds had been allocated during his administration for the following projects:

• Relocation of Male’ Commercial Harbor to Gulhifalhu
• Development of a cricket stadium
• Development of oncology-specialized hospital in L. Gan
• Expansion of the state fisheries company, Maldives Industrial Fisheries Company (MIFCO)

He expressed hope that the incumbent administration will engage in discussions to allocate this money beneficially to the citizens during official talks with India during Prime Minister Narendra’s ongoing state visit to the Maldives. 

Sun has learned that Modi is scheduled to meet senior officials from MDP during his visit. He requested meetings with former Maldivian presidents Mohamed Nasheed and Ibrahim Mohamed Solih, both of whom had fostered close ties with India during their administration. However, Solih will reportedly not be able to meet Modi as he is currently overseas for medical treatment.

The MDP had held close relations with India during its two administrations, the first one under Nasheed from 2008 to 2012, and the second one under Solih from 2018 to 2023. Both administrations were often slammed for its over reliance on the Indian government.

But, elected to office on a pledge to expel Indian troops from the Maldives, relations between Male’ and New Delhi had been strained in the early days of President Muizzu’s administration.

Things escalated further three months into office when three deputy ministers made disparaging remarks regarding India and Indian Prime Minister Modi following a social media post promoting India’s Lakshadweep as an alternative tourist destination to the Maldives.

Speaking to reporters after concluding a state visit to China the same month, President Muizzu said that Maldives wasn’t any country’s backyard and that the country cannot be bullied just because its small – remarks that were widely believed to be directed at India.

But despite the earlier turmoil, officials from both Male’ and Delhi repeatedly expressed keenness to repairing relations, and engaged in several high-level visits, including two by President Muizzu himself.

MDP’s leader, former Foreign Minister Abdulla Shahid has stated that the current administration has finally recognized India as a true friend of the Maldives during an interview to Indian media outlet, ANI, ahead of Modi’s visit.

Meanwhile, Nasheed, in an interview to ANI, has remarked Maldivian economy would have defaulted if not for India's prompt assistance at a time when the Maldives is facing increasing financial troubles and significant debts.