China considers granting five-year loan deferment to Maldives

Maldivian President Dr. Mohamed Muizzu (L) with Chinese President Xi Jinping (R) on January 10, 2024. (Photo/President's Office)

China has agreed to grant easements in the repayment of loans issued to Maldives, and the two countries will initiate negotiations soon, says President Dr. Mohamed Muizzu.

He made the statement while speaking to the press at the Velana International Airport on Saturday afternoon, after concluding his state visit to China.

President Muizzu said he asked Chinese President Xi Jinping to restructure the loans issued to Maldives.

He said that the loans were direct loans, and that a technical team from China’s Finance Ministry will travel to Maldives soon, “to research and decide the way to offer a grace period in loan repayments over next five years.”

“This will allow us great easements in loan repayment,” he said.

Maldives owed USD 1.52 billion to China.