Maldives and China Finalise Debt Relief Arrangements
Photo: The President’s Office
Chinese Ambassador to the Maldives, Kong Xianhua, announced that China has finalised arrangements to extend concessions on the Maldives’ loans.
The two countries have been engaged in months-long negotiations to reach an agreement on reducing the island nation’s debt burden. Kong made the announcement during a reception hosted by the Chinese embassy at the Barceló Nasandhura Malé to mark China’s 76th National Day. Details of the deal have not been disclosed.
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Kong described the arrangement as a reflection of China’s strong support for the fiscal and financial stability of the Maldives. He also highlighted Beijing’s confidence in the reforms undertaken by the Maldivian government and the potential of the country’s economy.
China is a key development partner and one of the Maldives’ largest lenders. Major infrastructure projects supported by China include the construction of the Sinamale’ Bridge, which connects Malé City with Hulhumalé and Hulhulé, home to Velana International Airport.
The Maldives is also running three major projects with Chinese grant aid, including the development of a hospital in Vilimale’, the redevelopment of roads in Malé and Vilimale’, and the construction of council buildings across 50 islands.
The announcement comes amid growing concerns over the Maldives’ external debt, which now stands at 134 percent of GDP. The country faces a USD 500 million repayment this year and a further USD 1.1 billion due by mid-2026. The proportion of this debt owed to China has not been disclosed.
