Amid PM Narendra Modi's two-day state visit to Maldives, India has extended Line of Credit (LoC) of over ₹4,850 crore to the country. India also committed to reduce Maldives' annual debt repayment obligation on Government of India-funded LoCs. The launch of India-Maldives Free Trade Agreement (IMFTA) negotiations was also announced on Friday. PM Modi said India is Maldives' "closest neighbour".