China to Support Maldives in Easing Debt Burden with No Additional Cost

The Chinese Ambassador to the Maldives, Kong Xianhua, announced today that China will support efforts to ease the Maldives’ debt burden at no additional cost, aiming to help safeguard the country’s fiscal and financial stability.

Speaking at a press conference held at Tho Residence in Hulhumalé, Ambassador Kong said the debt relief arrangement has already been in effect since last year and that the paperwork is expected to be finalised by the end of September. He described the arrangement as sufficient to maintain financial stability for a “reasonable period of time”, giving the Maldives space to recover from recent economic shocks such as the Covid-19 pandemic and stalled infrastructure projects.

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“China will support easing the Maldives’ debt burden, help safeguard its fiscal and financial stability, and thus maintain political and social stability, creating time and space for reforms, while also setting an example for other creditors,” he said.

Kong emphasised that the relief concerns a large amount and is very concessional, coming at no extra cost, and added that social and financial stability are critical for the Maldives. 

“If we succeed in the reasonable amount of time, perhaps the Maldives will be able to reach out to other countries to provide financial assistance,” he noted.

Alongside debt relief, the ambassador outlined three major areas of ongoing cooperation. These include the design bidding process for the China-Maldives Friendship Hospital in Vilimalé, the redevelopment of municipal roads in Malé and Vilimalé, and the construction of island council office buildings, for which feasibility studies have been completed. These projects will proceed fully funded by Chinese grant aid, he added.

He also highlighted the signing of 11 cooperation agreements during President Dr Mohamed Muizzu’s recent visit to China. The agreements span agriculture, infrastructure, fisheries, electricity, new energy, and education, which Kong said had “injected strong momentum into China-Maldives cooperation, marking a new stage in practical collaboration.”