Nasheed reignites ‘debt trap’ row with Chinese ambassador

In multiple interviews during a visit to India last week, Nasheed contended that Chinese-funded infrastructure projects were carried out at inflated costs and designed to allow China to demand an ownership stake. “Assets created by debt is not equal to it, so we can’t pay the debt. When you are unable to pay debt, they ask for equity and with equity we very often relinquish land and sovereignty,” the former president told ANI.

Nasheed, president of the ruling Maldivian Democratic Party, also declared that a free trade deal signed with China by the previous administration was “dead” as parliament would not pass legislation needed to implement zero tariffs.

“In terms of other construction contracts, we must get the contracts done. We can’t stop them halfway,” he told WION. “It will not do any good to anyone. At the end of the day, we have to pay the bill but my point view is, the Chinese government must restructure the debt and it is up to them to do it and I hope they will do it.”