Chinese lending puts Maldives at risk of debt distress
The study found that future Belt and Road-related financing will significantly add to the risk of debt distress of eight countries, including the Maldives.
08 Mar 2018, 9:00 AM
The Maldives is one of eight countries subject to high debt distress from Chinese investments, a study has revealed.
The findings come from the Center for Global Development (CGD), a Washington-based think tank, which examined the debt implications of Beijing’s Belt and Road Initiative.
The study evaluated the current and future debt levels of the 68 countries hosting BRI-funded projects. It found that future BRI-related financing will significantly add to the risk of debt distress of eight countries, including the Maldives.
“The three most prominent investment projects in the Maldives are an upgrade of the international airport costing around $830 million, the development of a new population center and bridge near the airport costing around $400 million, and the relocation of the major port (no cost estimate). China is heavily involved in all these projects,” the CGD report says.
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