China’s Ambassador Denies Causing Maldives’ Debt Struggles, Pledges Assistance

Chinese Ambassador to the Maldives Kong Xianhua has clarified that China is not responsible for the Maldives’ debt struggles but remains committed to helping the island nation resolve its financial challenges. Speaking at Sun’s Diplomatic Focus Program, Ambassador Kong emphasized the sustainability of the financial partnership between the two countries, citing successful projects funded under China’s Belt and Road Initiative (BRI), including the Sinamale’ Bridge, Velana International Airport, and thousands of housing units. Kong highlighted that revenue from these projects is sufficient to repay loans taken by the Maldivian government, reinforcing the sustainability of the cooperation. He attributed the Maldives’ debt issues to factors such as the COVID-19 pandemic, incomplete projects, and unproductive ventures that fail to generate sufficient revenue. Despite not being the cause, Kong assured that China is willing to assist its 'friend' in resolving the debt situation. A debt rearrangement agreement has already been finalized between Chinese and Maldivian stakeholders, providing significant financial relief. Additionally, China has announced new fully funded projects and expressed optimism about increased direct investment in the Maldives. Last week, the two nations signed a development cooperation agreement, with China pledging approximately MVR 1.3 billion in aid for priority projects such as the China-Maldives Friendship Hospital in Villimale’, road development, and the construction of council buildings.