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CGD in the News

Maldives trapped in Chinese debts ahead of polls (The Asian Age)

September 20, 2018

By Shumona Sharmin Sharna 

From the article: 

The Maldivians are going to cast their ballots on 23rd September (Sunday) in the next general election of Maldives. Maldives is most likely to get under financial pressure if President Abdulla Yameen wins the polls because of some infrastructural projects in Maldives which are funded by Chinese debts. Maldives got much closer to China during the tenure of President Abdulla Yameen. China has financed roads, bridges and some other construction works in Maldives through loan-based contracts between Chinese and Maldivian sides.

Foreign affairs experts have said that Maldives is already trapped in Chinese debts ahead of the upcoming election. It goes without saying that China's Belt and Road Initiative (BRI) has meanwhile endangered some other countries with loans on stern terms and conditions. 

... 

Center for Global Development, an American institution has said that Maldives is very much at risk with China's Belt and Road Initiative. According to Center for Global Development (CGD), China's loans to Maldives have amounted to 1.3 billion USD which is higher than one quarter of Maldives' annual gross domestic product (GDP). 

Read the full article here.

 

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Senior Fellow, Director of the US Development Policy Initiative