President Dr Mohamed Muizzu announced on Saturday a new agreement with China to facilitate easier repayment terms for the Maldives’ debt. This announcement followed President Muizzu’s first state visit to China, which was at the invitation of President Xi Jinping.
This arrangement is expected to bring considerable relief to the Maldivian economy, particularly in terms of loan repayments. To formalize this agreement, a financial delegation from China is scheduled to visit the Maldives soon.
In addition to the debt repayment agreement, President Muizzu revealed that China has pledged to grant the Maldives USD 130 million in aid. This financial assistance is earmarked for various development projects within the Maldives, to be determined by the Maldivian government. A significant portion of this aid is allocated for the development of roads in Male’. The aid will also cover other developmental activities, further strengthening the bilateral relations between the two countries.
Moreover, the visit marked the signing of a Memorandum of Understanding (MoU) between the Maldives and China, encompassing several key infrastructural projects. Notably, the MoU includes the construction of 30,000 social housing units in Rasmale’ and the expansion of Velana International Airport. These projects are poised to contribute substantially to the infrastructural and social development in the Maldives.
President Muizzu’s visit and the subsequent agreements signify a deepening of ties between the Maldives and China. The financial aid and the eased debt repayment terms reflect China’s continued investment in the Maldives, while the infrastructural projects demonstrate a commitment to the long-term development of the island nation. The impacts of these developments are expected to be far-reaching, both economically and in terms of the quality of life for the Maldivian people.
