New Delhi, Oct 7 (Reporter) In a reset of bilateral ties that were on the verge of turning frosty, India and the Maldives on Monday adopted a vision document for Comprehensive Economic and Maritime Security Partnership, even as New Delhi provided its cash-strapped Indian Ocean neighbour with a much-needed $400 million and Rs 30 billion financial aid package. Maldives President Mohamed Muizzu, who is in India on a five-day state visit, set the tone for reset of the ties by stating in an interview to the BBC earlier that India is fully aware of Male’s dire fiscal situation and “as one of our biggest development partners, will always be ready to ease our burden, find better alternatives and solutions to the challenges we face”. PM Narendra Modi, in his media statement after holding talks with President Muizzu, said that development partnership is a key pillar of the bilateral relationship. “And we always give preference to the priorities of Maldivian people in this context”. “This year SBI has rolled over USD 100 million of Treasury Bills for Maldives. Today, as per the need of Maldives, a currency swap agreement of USD 400 million and INR 3000 crore (INR 30 billion) has also been concluded.” The Maldives Monetary Authority (MMA) said the currency swap agreement signed today will provide Maldives with 400 million dollars or euros as well as 30 billion Indian rupees. MMA said the central bank will be able to swap in two currency windows under the new agreement and can opt for swapping on different occasions. "While the dollar/euro swap facility is a measure to support short-term foreign exchange needs, the Indian rupee swap facility will facilitate trade transactions between India and Maldives in the respective currencies," the MMA said. Prime Minister Modi underscored the importance attached by India to its relationship with Maldives under its ‘Neighbourhood First’ Policy and Vision SAGAR, and reaffirmed India’s unwavering commitment to assist Maldives on its developmental journey and priorities. Expressing gratitude for the financial aid, President Muizzu said: “I want to thank India for the generous assistance over the years including the latest financial assistance, of Rs 30 billion Indian rupees in addition to the USD 400 million currency swap, which will be instrumental in the foreign exchange issues we are facing.” The Maldives is staring at a debt default as its foreign exchange reserves have plunged to USD 440m (Pound 334mn), just enough for one-and-a-half months of imports. Foreign Secretary Vikram Misri, briefing the media, said the agreement has two elements – “to allow Maldives to avail USD 400 million window and a separate INR 30 billion window. The idea is to bolster its foreign exchange reserves access. It generates confidence in Maldives’ foreign exchange position and allows them to enter into deals or discussions where they require this foreign exchange they can draw on. It sends out a signal of comfort where Maldives is concerned.” Regarding further financial assistance sought by the Maldives, the Foreign Secretary said: “A number of points and requests were made, which have been brought to our notice; we will study them” and get back to the Maldivian authorities. In his address, PM Modi said the two sides have decided to hold discussions on a Free Trade Agreement, and are also focusing on digital connectivity. India also launched the RuPay Card in Maldives and PM Modi said that the two sides will try and link up with the United Payments Interface, the Indian digital payments system. The two sides are in talks to open a new Indian consulate in Addu city in Maldives, and a new Maldives consulate in Bengaluru, to strengthen people to people links. PM Modi said the two sides have also held talks on infrastructure development, according to the requirements of Maldives, in areas including ports, airports, housing, hospitals, roads, sports facilities, schools and water and sewerage. India would also focus on the timely completion of the flagship Greater Malé Connectivity Project (GMCP), and undertake a feasibility study to connect the islands of Thilafushi and Giraavaru as an extension. Both sides would also collaborate in the development of a state-of-the-art commercial port at Thilafushi island in order to de-congest the Malé port and provide enhanced cargo handling capacity at Thilafushi. PM Modi said that India and Maldives have age-old relations and that Maldives is India’s closest neighbour. PM Modi said that India has always acted as the first responder for Maldives, whether to bring essential commodities for the people of Maldives or provide help during any natural calamity, and providing vaccines during Covid. India has always upheld its responsibility of being a neighbour, and to give strategic depth to the relations the two sides have decided to adopt the “Vision of Comprehensive Economic and Maritime Security Partnership”. He said that India will continue to provide training and capacity building for the Maldivian National Defense Force and that both sides will work together for the security and peace in the Indian Ocean Region. The two leaders presided over the virtual launch of the RuPay card in Maldives, inauguration of the new runway of Hanimadhoo International Airport and handing over of 700 social housing units built under the EXIM Bank’s Buyers’ Credit Facilities. The two sides inked MoUs between the Rashtriya Raksha University and the National College of Policing and Law Enforcement of Maldives; an MoU between the Central Bureau of Investigation and the Anti-Corruption Commission of Maldives on preventing and combating corruption; renewal of MoU between National Judicial Academy of India and the Judicial Services Commission of Maldives on training and capacity building of Maldivian judicial officers; and renewal of MoU between the two sides on cooperation in Sports and Youth Affairs. Foreign Secretary Vikram Misri said the vision document talks about developing a comprehensive security and maritime partnership, and “gives us confidence that we are going to be able to engage in a substantive way with the Maldives”. The discussions today also saw defence and security cooperation feature in a big way, and “both sides emphasised the importance of the defence and security aspects, and to reinforce this in the relationship. There is very little doubt that we will continue to engage with Maldives in defence and security matters,” the Foreign Secretary stated. The Maldives President in his address said that Maldives is fully committed to strengthen cooperation with India across a wide spectrum of areas. “India is an important partner in the maritime security domain,” he said, adding that next year both sides will mark 60th years of their diplomatic ties. “I have invited PM Modi to commemorate the occasion,” President Muizzu said. Foreign Secretary Misri said that PM Modi has accepted the invite, and both sides will work out the dates of the visit. “Maldives will remain a true friend, committed to our shared vision of peace and development in our countries and our region” President Muizzu said...////...