Maldives President Muisu thanked India and China for their support to strengthen his country’s weak economy

President Mohamed Muisu has thanked India and China for helping to bolster the Maldives’ fragile economy, highlighting the two countries’ importance in addressing the island nation’s crippling debt crisis and its future growth.

China and India are providing more assistance in repaying the country’s debt, President Muisu said on July 26 at an official ceremony marking the country’s 59th anniversary of independence.

„On behalf of the Maldivian people, I would like to thank the Government of China and the Government of India for their cooperation in this effort for the benefit of the Maldivian people, to ensure our economic sovereignty and to strengthen the economy,” said Mr. Muisu noted. Maldives news portal adhadhu.com.

Mr. Muizu came to power last year on an anti-India campaign plank.

Widely regarded as a pro-Beijing leader, Mr. Since Musa took power, China for its part has expanded its ties with the Maldives.

Earlier this year, he visited China during which the two countries upgraded their ties to a comprehensive strategic cooperative partnership and signed 20 agreements and a military assistance agreement with Beijing. Ocean.

He allowed Chinese research vessels deemed „spy ships” to dock in Maldivian waters after Sri Lanka banned them for a year.

However, Mr. Muizu took India by storm and attended Prime Minister Narendra Modi’s inauguration ceremony.

Appreciating India’s aid of ₹400 crore, he sought to restructure the debt owed by Maldives to India.

In May this year, the International Monetary Fund (IMF) warned Maldives of a significant change in its policy towards India.

The IMF noted that Maldives’ current account deficit will remain high and its overall fiscal deficit and public debt are expected to rise.

Following this, the Muizu government tried to restructure loans from China. Maldives’ debt to China was reportedly over $1.3 billion, prompting Beijing to initially reserve debt restructuring.

Mr. Muizu told his July 26 meeting that this would be a big relief to prevent a similar situation faced by Sri Lanka in the case of Maldives defaulting on its debt.

At the height of the Sri Lankan crisis, China refused to restructure Colombo’s loans. India offered to bail Sri Lanka out of the crisis with about $4 billion in aid.

Former President of Maldives Mr. A large portion of the loan taken from China’s Exim Bank for development projects during Yameen’s tenure is due to be repaid by 2026. adhadhu.com Report.

If the debts are not restructured, the Maldives will face a severe financial crisis.

Technical work is underway to restructure loans from China’s Exim Bank, through which President Muizhu hopes to „shape foreign policy to safeguard the country’s independence”.

Mr. Mr. Yameen said the implementation of the Free Trade Agreement (FTA) signed between the Maldives and China during Yameen’s government will begin in September and hopes to sign a similar agreement with India. Muizu said.

Efforts are also underway to enter into free trade agreements with Turkey and Britain.

As a result of the implementation of the Free Trade Agreement with China, Mr. Muisu said.

He also said his government is working on currency swap agreements with China and India to help local businesses.

He said it would pave the way to overcome the dollar deficit and ensure economic sovereignty.

For its part, China has continued to increase its assistance to the Maldives by strengthening its cooperation in key infrastructure and renewable energy projects that are vital to its sustainable development.

Maldivian Foreign Minister Musa Zameer, who was in Beijing earlier this week, held talks with Chinese Foreign Minister Wang Yi and other officials.

During his visit, Mr. The two countries signed a letter of exchange on a feasibility study for the redesign of the Male and Willemal Roads project, a major commitment by Muisu’s government.

The Maldives Foreign Ministry said in a press release on July 23 that the discussions focused on strengthening cooperation on key infrastructure projects that are vital to the sustainable development of the Maldives.