China agreed to begin Maldives' debt restructuring talks, pres says

China has agreed to begin negotiations on potentially deferring or giving more lenient repayment terms for its loans to China for the next five year, President Mohamed Muizzu said Saturday.

Speaking to reporters at the Velana International Airport after returning from his state visit to China, President Muizzu said he had asked Chinese President Xi Jinping to revise the loan repayment schedules.

"The money owed to China, from various loans, direct direct loans. The two countries discussed at the highest level about relaxing the existing plan or rescheduling repayment for those loans," he said.

“China will send a technical team, [officials from] China's ministry of finance and a technical team from the finance sector to Maldives very soon to study and determine ways to offer concessions for repayments for the loans to China for the next five years, without paying for five years, or with a grace period of as long as possible."

The president said that this would greatly facilitate the repayment of loans.

Maldives owes China $1.37 billion, according to World Bank figures. This is 20% of the country’s total external debt.