Maldives looks for new deal on China debt
- New administration aims for a diplomatic resolution to heavy borrowing under previous president
Former strongman president Abdulla Yameen relied heavily on Beijing to provide financial support during his five-year term and his successor’s party has accused China of a land grab in the country.
Foreign Minister Abdulla Shahid said on Thursday that China was a generous donor, but the previous Maldivian government borrowed heavily without adequate provisioning for repayments.
Speaking in Sri Lanka’s capital Colombo, he said the direct loans as well as government guarantees to state-owned enterprises on their loans from China amount to a debt of some US$1.4 billion.
This was a large burden for the nation of 340,000 Sunni Muslims, he said.
“Borrowings by the previous government [of president Abdulla Yameen] were unreasonable and put us in difficulty,” Shahid said. “But, we can solve this mess through diplomatic means.”