China: Restructuring debt will pose obstructions to acquiring future loans

Chinese Ambassador to the Maldives Wang Lixin states restructuring debt owed by the Maldives to China could pose difficulties in acquiring loans for future projects.

She made the remark while speaking at a press conference held by the Chinese Embassy in the Maldives on Thursday.

Ambassador Wang revealed that a technical team from both China and the Maldives was taking charge of the issue, but however, was not in view of restructuring the debt as it could pose obstructions to acquiring loans for future projects.

She further expressed the Chinese government was proceeding with caution regarding the matter, as they do not wish to increase Maldives’ debt burden.

In this trajectory, Ambassador Wang said the Chinese government was presently more focused on projects with grant assistance.

As per World Bank statistics – Maldives debt to China is at USD 1.37 billion – accounting for 20 percent of Maldives’ foreign debt. The most loans, in this regard, had been withdrawn during former president Abdulla Yameen Abdul Gayyoom’s administration.