India has granted concession in the repayment of loans due by Maldives, which will see a 40 percent decrease in the annual repayment obligations.
The agreement pertaining to the concession was executed on Friday as part of Indian Prime Minister Narendra Modi’s ongoing state visit to the Maldives.
Speaking during a press conference on Friday evening, India’s Foreign Secretary Vikram Misri said annual repayment obligation of loans accumulated through Line of Credit (LOC) has been decreased by 40 percent. This would effectively decrease Maldives’ annual debt repayment obligation to India from USD 51 million to USD 29 million.
The USD 800 million LOC was facilitated during former president Ibrahim Mohamed Solih’s administration.
Commenting on the LOC earlier on Friday, Solh called on the incumbent administration to make effective use of the remaining USD 450 million from the USD 800 million LOC 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.
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. 
Notably, Maldives and India executed an agreement on a new USD 565 million LOC for infrastructure development projects.
 
According to Misri, the funds will be issued in Indian Rupees, which would make it easier for Maldives to manage its debt.