IMF warns of Maldives foreign debt crisis after ‘heavy’ borrowing from China

The archipelago, famed for its white-sand beaches and where tourism accounts for nearly a third of the economy, has recovered economically from the COVID-19 pandemic.But while a planned airport expansion and an increase in hotels are projected to boost growth, the IMF said “uncertainty surrounding the outlook remains high and risks are tilted to the downside.”Muizzu’s mentor, former president Abdulla Yameen, who ruled for five years until 2018, borrowed heavily from Beijing for construction projects.That left it owing 42 percent of its more than $3 billion foreign debt to China in 2021, according to the World Bank, citing the Maldives’ finance ministry.Muizzu, who has requested that Indian troops operating three reconnaissance aircraft in the Maldives leave by May 10, has vowed to strengthen his military to defend the country’s vast maritime territory.Global east-west shipping lanes pass through the nation’s chain of 1,192 tiny coral islands, stretching around 800 kilometres (500 miles) across the equator.



Source link