Male (Maldives) [India], July 25 (ANI): India has signed a Memorandum of Understanding (MoU) to extend a Rs 4,850 crore line of credit to the Maldives, continuing its long-standing tradition of supporting the developmental needs of the South Asian nation, the Ministry of External Affairs (MEA) said on Friday.

The announcement came after a bilateral meeting between Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu during PM Modi's two-day visit to the Maldives as the Guest of Honour for the country's 60th Independence Day celebrations.

Foreign Secretary Vikram Misri, addressing a press briefing, said that this will be the first line of credit extended to the Maldives denominated in Indian rupees, replacing the earlier dollar-denominated credit.

'We have signed an MoU related to the extension of a fresh line of credit, of Rs 4850 crore to the Maldives. This is the first Line of Credit (LoC) extended to the Maldives that is denominated in Indian rupees. The Line of Credit (LoC) represents a continuation of the tradition of assistance to the development needs of the Maldives, and we expect that several infrastructure projects will be carried out as a result of this Line of Credit (LoC) agreement, benefiting the lives of citizens here in the Maldives,' Misri said.

He added that the two sides also signed a mandatory agreement to amend the existing dollar line of credit between India and the Maldives.

'With the signature of this mandatory agreement, the annual debt repayment obligations of the Maldives will reduce by a sharp 40 per cent from nearly 51 million dollars annually to 29 million dollars,' Misri said.

On trade cooperation, the Foreign Secretary expressed optimism over the early conclusion of the proposed India-Maldives Free Trade Agreement (IMFTA). 'I cannot point to an exact timeline... This is an FTA that we should be able to conclude rather quickly,' he said.

India and the Maldives also signed agreements to enhance cooperation in multiple sectors, including fisheries and aquaculture, as well as to promote digitalisation. An MoU was signed between the Indian Institute of Tropical Meteorology (IITM), Ministry of Earth Sciences, and the Maldives Meteorological Services (MMS), Ministry of Tourism and Environment.

The Maldives has also agreed to recognise the Indian Pharmacopoeia (IP) -- India's official book of drug standards.

PM Modi is on a two-day visit to the Maldives at the invitation of President Muizzu. (ANI)