Debt Relief Deal Shows China’s Confidence in Maldives’ Economy, Says Chinese Ambassador

China’s Ambassador to the Maldives, Kong Xianhua, has confirmed that debt relief arrangements between the two countries have been finalised, describing the move as a sign of Beijing’s confidence in the Maldivian economy and its ongoing reforms.

Speaking at a ceremony at Nasandhura Hotel on Tuesday to mark China’s National Day and the Mid-Autumn Festival, Ambassador Kong announced that discussions on deferring repayments had concluded successfully between the relevant agencies of both governments.

“I’m glad to announce that debt relief arrangements between concerned parties of our two sides have been fully finalised. These arrangements manifest not only the Chinese government’s strong support for the fiscal and financial stability of the Maldives but also our confidence in the reforms undertaken by the Maldivian government and the potential of the Maldivian economy,” the Ambassador said.

He also highlighted several ongoing and upcoming development projects supported by China, including the China-Maldives Friendship Hospital in Vilimalé, road development projects in Malé and Vilimalé, and the construction of council buildings on 50 islands.

Kong noted that bilateral relations had strengthened following President Mohamed Muizzu’s state visit to China earlier this year, during which 11 memoranda of understanding were signed. He further welcomed the Bank of Maldives’ introduction of yuan-denominated accounts, calling it a step forward in deepening economic cooperation.

President Muizzu had earlier confirmed that he requested debt relief during his meeting with Chinese President Xi Jinping in 2024, seeking either deferred repayment terms or concessional arrangements. According to Muizzu, China agreed to reschedule loan repayments over the next five years or extend alternative relief measures.