China did not restructure any loans: Nasheed

Mohamed Nasheed
The former President of Maldives and the current Speaker of the Parliament, Mohamed Nasheed. | Photo via Avas

Male’, Maldives – The former President of Maldives and the current Speaker of the Parliament, Mohamed Nasheed says that China has not restructured any of the debts Maldives owes to them.

The statement from Nasheed comes after the President’s Office of Maldives announced that the government of China has allowed the repayment of some of the loans that were taken by Maldives. According to the President’s Office, China allowed deferment in the debts that were given by Chinese government under the Group of Twenty (G20) Debt Service Suspension Initiative (DSSI).

However, while answering to a reporter today, Nasheed said that from what he knows, China has not yet restructured any of the loans that were taken by Maldives.

“No, as far as my knowledge, they have not restructured any of the debts. The G20 countries did have an agreement to continue with the debt relief after the Covid-19 pandemic ends. China was among these countries.”

Speaker Mohamed Nasheed stated.

Nasheed said that the Maldivian government will talk to the Chinese government regarding the debts and that hopefully, China will restructure the debts that we owe.

Nasheed further said that the debt Maldives owes to China is not a small debt and that it cannot be paid easily within a day. This is why, he said that it is not justified for the countries to urge us to repay the debts.

While speaking on the occasion marking 2 years to the administration of President Ibrahim Mohamed Solih, Nasheed previously also added that a mighty and well off country like China insisting that a small country like Maldives, with a population of 400,000 people pay their dues to China during this time, “even after selling off our jewelry,” according to pre-Covid-19 terms is unfair, and requested the Chinese President to reconsider.

According to Nasheed, the country is due to pay USD 83 million to China before the year 2020 ends. He said that 53% of the revenue expected to be received by the government in 2021 will be used to pay the debts and over 80% of these debts are of China loans.

The lates National Debt Report complied by the parliament showed that the national debt of Maldives has added up to a whopping MVR 172 billion.