China has no plans to restructure loans owed by the Maldives, Chinese Ambassador to the Maldives Wang Lixin said on Thursday.
Speaking at a press conference at the Chinese embassy, Wang Lixin said technical teams from China and the Maldives have been exploring avenues for restructuring the debt but China does not intend to do so at the moment.
Other options are being considered because the Maldives will face difficulties in securing loans to carry out new projects if the debt is restructured, Wang Lixin said.
Many loans were taken from the Chinese government during former President Abdulla Yameen's government to carry out housing projects. The repayment of these loans has not been completed yet.
After returning from a state visit to China in January, President Dr. Mohamed Muizzu said he had received assurances that the repayment period of Chinese loans would be extended.
The largest portion of the Maldivian state's external debt is owed to the 100 percent state-owned Export-Import Bank of China. The debt owed to the bank stood at MVR 8.1 billion at the end of last year's third quarter.
Last Monday, as requested by the Maldivian government, the Indian government agreed to postpone the repayment of a USD 50 million treasury bond purchased by the State Bank of India (SBI) by one year.
