Maldives Minister of Finance Mr. Ibrahim Ameer has assured that the state acquired loans from the Chinese state will not result in debt traps.
According to the minister, loans acquired from the Chinese government or any other foreign state or financial institute will not result in such an eventuality.
Mr. Ameer further declared that the loan conditions do not include Maldives government having to repay any domestic assets in compensation.
He further noted that the state had not mortgaged any state or domestic assets when acquiring the loan facilities.
The minister's response was directed towards inquiries made during the Finance Committee of Maldives Parliament.
The committee's member Maradhoo constituency MP Mr. Ibrahim Shareef had directed the line of inquiry owing to mounting public speculation over the loans acquired from China being 'debt traps.'
Meanwhile, Parliament Speaker Mohamed Nasheed had also indirectly implied that the nature of the state acquired loans from the Asian giant will lead to debt traps.
China has been often mired in allegations internationally from all over over its supposed debt-trap diplomacy, which it denies.
Minister Mr. Ameer confirms that the Maldivian government did not mortgage any underlying assets unlike the common practice visible in various parts of the world.
Moreover, he attests the government had received several international proposals to extend loan facilities on the condition of mortgaging state assets.
However, as per Mr. Ameer the state had declined such proposals every single time.
So far in the Maldivian history, the greatest number of loans acquired from the Chinese government amount to MVR21 billion which were acquired during the previous administration led by former President Abdulla Yameen.
Yameen's administration had leaned heavily towards the bilateral ties between the island nation and China which was evident with the Asian giant taking over the largest infrastructure development project concluded in the Maldives till date; the Sina Male' bridge.
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