Maldives

Malé is hoping for a bailout from New Delhi after credit rating agencies downgraded the country’s debt over a high risk that it could default on an Islamic bond.

The Bank of Maldives suspended foreign currency spending from local cards but reversed the decision six hours later after the government intervened in the face of a public uproar.

The visit of Indian External Affairs Minister S. Jaishankar to Malé marked the renewal of traditionally close ties that soured in the early days of President Muizzu’s administration.

If tariffs are eliminated for Chinese goods, Maldives will be forced to import exclusively from China as goods from other countries would not be able to compete against cheaper Chinese goods.

Amid an intensifying competition for influence, the Maldives’ mounting debt is the most central issue in its relations with both India and China. 

Some of its islands have lost ground to erosion, some are stable, while still others are expanding.

Or are authorities using sorcery allegations as a pretext to arrest a former close aide of Muizzu who allegedly had evidence of his corruption during his days as Malé mayor?

The appearance of Maldives President Muizzu alongside Narendra Modi signals the warming of the relationship between the island nation and regional power India.

Credit ratings agency Fitch downgraded the Maldives to “junk” status, casting doubt on the country’s ability to meet “substantial upcoming external debt-servicing obligations.”

The government announced that the ban is unlikely to be a “blanket;” it will address concerns over Arab Muslim and Palestinian citizens of Israel.

Daniel Bosley discusses China-India competition and domestic politics in the Maldives, and Rajeswari Pillai Rajagopalan puts that in the context of broader IOR dynamics.