China has faced criticism for its infrastructure projects in the developing countries, which are disguised as debt traps intended to increase Chinese footprints in the region. But the Sinamale bridge, also known as the China-Maldives Friendship Bridge could be seen as a real success.
However, the current Maldives government doesn't see it that way. It is alarmed by how much money this tiny, tourism-dependent nation now owes China.
Some argue that some of the big infrastructure projects, like the expansion of the airport built with Chinese loans during former president, Mr Abdulla Yameen's administration, have helped to boost tourist arrivals in the Maldives. They point out that it was difficult to get the money for the projects from other international players.
Regarding the allegations against China of luring Maldives to borrow money for infrastructure development with the intention of seizing islands and land if the country fails to pay off the loans in time, Chinese Ambassador to Maldives, Zhang Lizhong shared his views on twitter.
Chinese Ambassador to Maldives dismissed these allegations and said “We have noted the constant concern of the public on the issue of debt sustainability in the Maldives. China understands the difficulties faced by the Maldives. And we have already implemented Group-20 Debt Suspension Initiative for the bilateral, official sovereign loans of the Maldives. And now the two sides are in good discussions on commercial loans with sovereign guarantees,” he said.
Maldivian Parliament Speaker, Mohamed Nasheed continues to be the most outspoken critic of the loans taken from China by the former administration to finance infrastructure development projects, which he alleges, is a debt trap and he has repeated his allegation in a recent interview to BBC as well.
Mr Nasheed has also stated that the debt to China is valued at USD 3.4 billion. However, Ambassador Zhang responded that the debt is valued at USD 1.52 billion.
Ambassador Zhang said that the current Maldivian government had put in place a strategy to ensure debt sustainability, but that it needs to be readjusted in light of the unprecedented Covid-19 pandemic. Hence the so-called debt trap is simply a gimmick for political purposes, and never a solution to debt sustainability.
However, the current Maldives government doesn't see it that way. It is alarmed by how much money this tiny, tourism-dependent nation now owes China.
Some argue that some of the big infrastructure projects, like the expansion of the airport built with Chinese loans during former president, Mr Abdulla Yameen's administration, have helped to boost tourist arrivals in the Maldives. They point out that it was difficult to get the money for the projects from other international players.
Regarding the allegations against China of luring Maldives to borrow money for infrastructure development with the intention of seizing islands and land if the country fails to pay off the loans in time, Chinese Ambassador to Maldives, Zhang Lizhong shared his views on twitter.
my thoughts on the debt issue (part I/3)
— Amb. Zhang Lizhong (@AmbassadorZhang) September 20, 2020
The discussion on commercial loan suspension requested by the Maldives side is underway. @abdulla_shahid pic.twitter.com/zrC8PeGXNi
Chinese Ambassador to Maldives dismissed these allegations and said “We have noted the constant concern of the public on the issue of debt sustainability in the Maldives. China understands the difficulties faced by the Maldives. And we have already implemented Group-20 Debt Suspension Initiative for the bilateral, official sovereign loans of the Maldives. And now the two sides are in good discussions on commercial loans with sovereign guarantees,” he said.
Maldivian Parliament Speaker, Mohamed Nasheed continues to be the most outspoken critic of the loans taken from China by the former administration to finance infrastructure development projects, which he alleges, is a debt trap and he has repeated his allegation in a recent interview to BBC as well.
Mr Nasheed has also stated that the debt to China is valued at USD 3.4 billion. However, Ambassador Zhang responded that the debt is valued at USD 1.52 billion.
Ambassador Zhang said that the current Maldivian government had put in place a strategy to ensure debt sustainability, but that it needs to be readjusted in light of the unprecedented Covid-19 pandemic. Hence the so-called debt trap is simply a gimmick for political purposes, and never a solution to debt sustainability.
