China embassy: Nasheed’s statements based on inaccurate information

Former Maldivian President Mohamed Nasheed’s statements accusing China of attempting to enslave Maldives using a debt trap is based on inaccurate information, says Chinese Embassy in Maldives.

In a speech during his recent visit to H. Dh. Dhidhdhoo, Nasheed described China as an emerging colonial power in the Indian Ocean. He said Maldives owes Chinese banks approximately USD 3.2 billion and alleged the country was attempting to enslave Maldives through a debt trap.

Speaking to ‘Sun’ regarding the accusations, an official from the Chinese Embassy said Nasheed’s comments were baseless and that he was using incorrect information.

The official said that the website of Maldives Monetary Authority (MMA) puts the total national debt of Maldives at USD 1.2 billion of which only USD 600 million are owed to China.

He said the USD 600 million were loaned to Maldives under sovereign guarantee to finance the Sina-Male’ Bridge (China-Maldives Friendship Bridge), and several airport development and housing projects.

He said that China has agreed to issue commercial loans to State-owned companies for projects to generate income totaling an additional approximately USD 900 million, but that the loans have yet to be issued.

The official said the Chinese government has nothing to gain from Maldives falling into debt.

He said the issue was discussed during the meeting between Chinese Ambassador Zhang Lizhong and President-elect Ibrahim Mohamed Solih (Ibu).