Chinese envoy confirms debt relief agreement with Maldives

China’s Ambassador to the Maldives, Kong Xianhua, announced on Tuesday that debt relief arrangements between the two countries have been finalised.

Speaking at a ceremony held at Nasandhura Hotel to mark China’s National Day and the Mid-Autumn Festival, Ambassador Kong said discussions on deferring repayments had been concluded between the relevant agencies of both governments.

“I’m glad to announce that debt relief arrangements between concerned parties of our two sides have been fully finalised. These arrangements manifest not only the Chinese government’s strong support for the fiscal and financial stability of the Maldives but also our confidence in the reforms undertaken by the Maldivian government and the potential of the Maldivian economy,” Kong said.

The Ambassador highlighted ongoing and upcoming development projects supported by China, including the China-Maldives Friendship Hospital in Vilimalé, road development projects in Malé and Vilimalé, and the construction of council buildings in 50 islands.

He added that bilateral relations had strengthened following President Mohamed Muizzu’s recent visit to China, during which 11 memoranda of understanding were signed. He also noted the Bank of Maldives’ introduction of yuan-denominated accounts as a step forward in economic cooperation.

President Muizzu, speaking to reporters after his state visit to China in 2024, confirmed that he had requested Chinese President Xi Jinping to defer repayment of loans or to extend concessions. He said China had given the green light to reschedule repayments over the next five years or provide alternative relief measures.

According to World Bank data, the Maldives owes China USD 1.37 billion, accounting for 20 percent of the country’s total external debt.