Context:

Following up on India’s announcement of a $500 million line of credit to the Maldives, the Exim Bank of India and the Maldives’s Ministry of Finance signed an agreement for $400 million in Male.

About:

• The borrower can withdraw money any time they want until they reach the maximum limit.
• The Line of Credit is not according to the Line of Credit, the lender is ready to lend a maximum amount to the borrower. a ‘grant’ but a ‘soft loan’.
• It is provided on concessional interest rates to developing countries, which has to be repaid by the borrowing government.
• It also helps to promote exports of Indian goods and services, as 75.

The Agreement

• The line of credit (LoC) will fund the Greater Male Connectivity Project (GMCP).
• India has also pledged a grant of $ 100 million for the initiative.

Greater Male Connectivity Project

The GMCP, a 6.7 km bridge and causeway network connecting Male, with islands Villingili, Gulhifalhu and Thilafushi.