Central bank governor concerned over mounting national debt

The central bank governor on Monday expressed concern over the Maldives’ mounting national debt.

Local media reported that Ahmed Naseer, who heads up the Maldives Monetary Authority, insisted that the country must maintain financial security and manage the external debt taken on for financing infrastructure and development projects.

The Maldives has borrowed heavily to pay for such projects, although the exact amounts and the borrowing terms are unclear. A study from a US think-tank said that Chinese lending in particular was putting the Maldives at risk of debt distress.

It is not the first time Naseer has warned about the state of the country’s finances.