China Considers Granting Five-Year Loan Deferment to Maldives
Photo: The President’s Office
China has considered providing relief in the repayment of loans extended to Maldives, with negotiations set to commence soon, according to President Dr. Mohamed Muizzu.
The announcement came during a press briefing at Velana International Airport on Saturday afternoon, following President Muizzu’s state visit to China.
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Muizzu revealed that he had specifically requested Chinese President Xi Jinping to restructure the loans granted to Maldives. He clarified that these loans were direct in nature and shared that a technical team from China’s Finance Ministry would be dispatched to Maldives shortly.
The primary objective of the team’s visit is to “research and decide the way to offer a grace period in loan repayments over the next five years,” Muizzu stated, expressing optimism that this initiative would significantly ease the burden of loan repayment for Maldives.
Maldives currently has outstanding debts amounting to USD 1.52 billion owed to China. The proposed five-year loan deferment is anticipated to bring about considerable relief to the Maldivian economy, allowing for a more manageable repayment schedule.
