MMA Clarifies Loan Restructuring Situation with China

Deputy Governor of the Maldives Monetary Authority (MMA), Ahmed Imad, addressed concerns regarding the restructuring of loans owed to China. As of Wednesday, the MMA has not received any official information indicating that China has restructured the loans due to them.

This clarification comes in the wake of President Dr Mohamed Muizzu’s announcement in January. President Xi Jinping of China had reportedly agreed to facilitate the repayment process for the Maldives, aiming to ease the burden of debt repayment. However, despite these assurances, the MMA has yet to receive formal communication regarding any loan restructuring.

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During a Public Accounts Committee meeting, an MP sought further details on the leniencies granted under this arrangement. Deputy Governor Imad responded, stating that there had been no official confirmation of loan restructuring from the Chinese side. The situation remains unchanged as of now.

President Muizzu had previously expressed optimism, mentioning that a financial team from China would soon visit the Maldives to address the debt repayment matter. The anticipated visit is expected to provide much-needed relief in terms of loan repayment.

While the Maldives awaits further developments, the government remains committed to managing its financial obligations responsibly. The cooperation between the two nations continues to be closely monitored, and any updates regarding loan restructuring will be communicated promptly.

As the situation unfolds, both Maldivian authorities and their Chinese counterparts are working towards finding mutually beneficial solutions. The Maldives remains hopeful that the promised assistance will materialize, allowing for smoother debt repayment and strengthening bilateral ties.

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