GLOBAL: India is ready to offer the Maldives emergency financial support to help ease the latter’s financial woes as its first Sukuk default looms, reported Bloomberg quoting undisclosed sources.
The Maldives can immediately tap US$400 million available under the Reserve Bank of India’s currency swap program which is open to regional countries, said Bloomberg’s sources. The country can also seek long-term loans under a US$800 million line of credit extended to the Maldivian government in 2019.
The emergency funding would help the Maldives meet its external debt payments due next month as investors worry over the world’s first Islamic bond default. The Maldivian government pledged to meet its debt obligations, helping its US dollar-denominated Sukuk recover from a record low.
