A report published by the World Bank States, at the end of 2020, the debt beard by the Maldivian government is at 78.9% of GDP and about 45% of this debt is to be paid to China.
Whilst the debt amount of the government is increasing in the ongoing 2020, A report reading “Maldives Development Update Stormy Seas” states, the accounts due to other countries might as well increase up to 219.2 million USD. And 45% of this money is to be paid to China Export-Import Bank (EXIM), China Industrial and Commercial Bank, and China Development Bank.
Despite the effects on the Maldivian Economy due to Covid-19 Pandemic, World Bank shows concerns for the amount of debt The Maldivian Government has towards other countries, even before the pandemic. The World Bank Group also stated that the expenses from the national reserve have been increasing while implementing the plans, of the electoral promises.
As the income generated into the economy had been reduced recently, the fiscal deficit of Maldives was concerning even before the Covid-19 Pandemic.