Chinese Ambassador to the Maldives Wang Lixin has stated on Thursday that the country does not wish for Maldives' debt to increase further. Hence, China will prioritize provision of grants and free aid to the Maldives, she said.
Chinese Ambassador to the Maldives Wang Lixin has stated on Thursday that the country does not wish for Maldives' debt to increase further. Hence, China will prioritize provision of grants and free aid to the Maldives, she said.
The Ambassador said that discussions are being held between the countries on providing some form of ease in debt repayment on the loans currently taken from China by the Maldives government.
She, however, maintained that debt restructuring is not the solution, as doing so would obstruct the Maldives from seeking further financial aid from China.
She stated that China, too, is deeply concerned about the rising debt of Maldives, adding that their policy is to move forward in a manner that would not further add to this debt.
"You also would have noticed that now, China is issuing grants to the Maldives. We are prioritizing providing free aid to the Maldives, so as not to further increase Maldives' debt," the Ambassador said.
Ambassador Lixin went on to highlight a number of projects which are currently planned in Maldives under grants and free aid from China. These include:
- Repair and maintenance of Sinamale' Bridge
- Increasing facilities in hospital laboratories
- Technical assistance to research issues faced by Maldivian coconut palms
- 100 bed hospital in Villimale' project
- Development of all Male' roads
The Ambassador highlighted that although China is providing grants, this is the time when the Maldives government should be expanding the Maldives' economy, and through that, increasing revenue and conducting development projects.
She emphasized the importance of Maldives achieving economic autonomy, and added that this can be achieved though increasing revenue via the means of broadening other industries.
Ambassador Lixin said that it is not ideal to be of the thought that everything will be carried out via the assistance of external loans, stating that this will leave immense debts to be repaid by future generations.
She dismissed the claims that China is placing Maldives in a 'debt trap' and asserted that China has always respected Maldives, and that the projects run in Maldives are not conducted with any motives of gain or benefit to China.
She stated that the 'debt trap' rhetoric is an agenda commonly used against China, stating that she had confidence Maldivians would not believe such narratives.
She assured that China would always provide assistance towards the development of Maldives, adding that the only returns China expected from this is to see Maldives becoming a developed nation.
"Commercial projects and other projects are run in Maldives by China after many deliberations between the countries. Every project China conducts in Maldives is done on request of the Maldives government. There is nothing that is being carried out in Maldives on China's request or demand," the Ambassador clarified.
"The terms of the projects are also determined by the Maldives' government. If Maldives' government seeks financial support from China, we will provide that. It is not for any personal benefit."
The Ambassador stated that China's hope is Maldives is strengthened into a nation that does not need to seek financial assistance from other countries.
The Ambassador highlighted that President Dr Mohamed Muizzu has made several major pledges to the people, and that the people, too, have many aspirations regarding development.
She stated that even if this remains so, everything cannot be facilitated by China. As such China is, she said, prioritizing projects by importance and categorizing them over specific durations.
The Ambassador stated that, at present, sustainable development is most crucial for Maldives.
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