China has agreed to take the necessary steps to restructure Maldives' debt and talks are scheduled to begin soon, President Dr. Mohamed Muizzu announced today.
Speaking to reporters at the Velana International Airport after completing his state visit to China, Muizzu said Chinese President Xi Jinping agreed to the proposal during official talks between the two countries.
“When I made the proposal to the Chinese president, he agreed and ordered relevant senior officials to send a technical team to Maldives to find more convenient arrangements for the Maldives to pay back the debt."
Muizzu said discussions were focused on extending the grace period for the next five years and paying the money as conveniently as possible during his term. He added that this will bring major relief to the country.
"They will soon send a technical team from the finance ministry and the finance sector to study and determine [convenient ways to repay the debt]."
Although Muizzu was referring to direct debt owed to the Chinese government, he did not reveal the figure. According to the Finance Ministry's debt statistics, there is no debt owed to the Chinese government.
However, the largest debt is owed to the Export-Import Bank of China, which is 100 percent owned by the Chinese state. The debt to the bank stood at MVR 8.1 billion as of the third quarter of last year.
