Chinese Ambassador: Debt Restructuring May Hinder Future Loans Access

Speaking at a press conference held by the Chinese Embassy in the Maldives on Thursday, Ambassador Wang disclosed that a technical team from both nations is handling the debt issue. However, she indicated that restructuring is not currently being considered as it could obstruct future loan opportunities.

The ambassador emphasized that the Chinese government is approaching the matter with caution to avoid exacerbating the Maldives' debt burden. Instead, China is focusing on projects supported by grant assistance.

According to World Bank statistics, the Maldives owes China USD 1.37 billion, which constitutes 20 percent of the country's foreign debt. A significant portion of these loans was acquired during the administration of former President Abdulla Yameen Abdul Gayyoom.