United States of America's Development Finance Corporation - run under its federal government - is in deliberations with the Maldives' government on prospective investments in the country, Assistant Secretary of State for South and Central Asian Affairs of the US Department of State Donald Lu has said.
Speaking at the Indo-Pacific Relations panel discussion held at United States Institute for Peace (USIP) last Friday, Lu noted the dire status of the economy in the Maldives at present.
"If the Maldives' debt is not restructured in 2026, more than USD 1.3 billion dollars will need to be issued as repayment. This is an amount higher than the annual budget," Lu said.
According to Lu, the solution to such challenges faced by small countries like the Maldives is private sector investments that are beneficial to both sides.
He noted the vast opportunities for investments in the Maldives that he observed during his visit to Maldives in January.
"We are in deliberations with Maldives to come to an investment agreement. Under this agreement, we will provide such funding to the Maldives through the US Development Finance Corporation," Lu said.
Maldives' Minister of Economic Development and Trade Mohamed Saeed has also stated last month that there is an opportunity for a trade delegation from Maldives to travel to the US. No other mentions of investment agreements with the US have been shared to date.
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