2024-02-20 22:22:40
Male:Maldives is currently facing a serious economic crisis. Even though Maldives has not gone bankrupt, its situation is quite critical. Maldives’ external debt has reached US$4.038 billion, a large part of which is China’s debt. According to official figures, the gross national income of Maldives is US$5.6 billion. In such a situation, there is a big challenge before President Mohammad Muizzu as to how he can rescue the country from this economic challenge. Muizzu is demanding debt relief from China and Arab Muslim countries to overcome this crisis.
Muizzu has sought financial assistance from countries like Turkey and China but no one seems to be coming forward. Muizzu has been continuously praising China but in view of the huge economic crisis of Maldives, his friend is also trying to avoid giving loan and Turkey’s attitude is also similar. At the same time, Muizzu’s anti-India stance and friendship for China is also being criticized in his country. The public is not happy with China’s Belt Road Initiative (BRI) for infrastructure development in Maldives. This is because many countries like Pakistan, Kenya and Tanzania are facing a lot of trouble after taking high interest loans from Chinese EXIM banks.
Maldives trapped in China’s debt trap!
Maldives owes China about US $ 1.3 billion, which is about 30 percent of its foreign debt. This debt is becoming a threat to his financial stability. On the other hand, Mohammad Muizzu has increased his dependence on China while spoiling relations with India. This also seems to be affecting the economic condition of Maldives. China’s influence on the Maldives has given rise to many concerns.
China’s growing presence in the Maldives through the Belt and Road Initiative (BRI) raises concerns about potential debt trap motives. International Monetary Fund (IMF) warnings regarding the rising debt of the Maldives also point to a possible economic crisis and emphasize the need to take action to avoid it. The IMF has expressed concern that the economic situation of Maldives is likely to worsen in the coming times.