On Saturday, President Dr. Mohamed Muizzu shared news of a new understanding with China aimed at facilitating more manageable debt repayment terms for the Maldives. This announcement came following President Muizzu’s inaugural state visit to China, an invitation extended by President Xi Jinping.
The agreement is anticipated to offer significant relief to the Maldivian economy, particularly in the realm of loan repayments. A delegation from China is set to visit the Maldives soon to formalize this arrangement.
In addition to the debt repayment arrangement, President Muizzu disclosed that China has committed to providing USD 130 million in aid to the Maldives. This financial support will be directed towards diverse development projects within the Maldives, to be determined by the Maldivian government. A substantial portion of this aid is designated for the enhancement of road infrastructure in Male’. It will also support various other developmental initiatives, fostering stronger bilateral relations between the two countries.
Furthermore, the visit witnessed the signing of a Memorandum of Understanding (MoU) between the Maldives and China, outlining several critical infrastructural projects. Notably, this includes the construction of 30,000 social housing units in Rasmale’ and the expansion of Velana International Airport. These initiatives are poised to make significant contributions to both infrastructural development and social progress in the Maldives.
President Muizzu’s visit and the resulting agreements underscore a deepening of ties between the Maldives and China. The financial aid and the amicable debt repayment terms signify China’s ongoing commitment to investing in the Maldives. Simultaneously, the infrastructural projects underscore a dedication to the long-term development of the island nation. These developments are expected to have far-reaching impacts, both economically and in terms of enhancing the quality of life for the people of the Maldives.
