Bad days have started for Maldives, which has distanced itself from India in the last few months.
The International Monetary Fund (IMF) has issued a stern warning to Maldives as it moves closer to China. Maldives has taken huge loans from China, due to which it is trapped in its trap.
Meanwhile, the IMF has alerted that Maldives is at high risk of debt crisis. It is noteworthy that Maldives President Mohammed Muizzu has given an ultimatum to expel the Indian Army from his country.
At the same time, China has also promised to give more loan to Maldives. In the last few decades, China has given huge loans to many countries including Pakistan and Sri Lanka, due to which the economy of these countries reached a bad condition.
The International Monetary Fund did not provide information on Maldives’ foreign debt, but said that urgent policy adjustments are needed. “Without significant policy changes, the aggregate fiscal deficit and public debt are projected to remain high,” the IMF said after reviewing the Maldives’ economy. “Maldives remain at high risk of external and macro debt distress.”
Maldives attracts a large number of tourists from all over the world including India. Tourism accounts for about a third of the Maldives’ economy. While planned airport expansion and an increase in hotels are expected to boost growth, the IMF said uncertainty over the outlook remains high.
Former Maldives President Abdulla Yameen, who ruled for five years until 2018, borrowed heavily from Beijing for construction projects. According to the World Bank, the Maldives owes 42 percent of its more than $3 billion foreign debt to China in 2021.
At the same time, in the last few days, Maldives has become closer to China. Mohammad Muizzu recently visited China, where he also met Chinese President Xi Jinping. In this meeting, 20 agreements including tourism were agreed upon between the two countries.
‘Foreign military contingent will be sent back from Maldives soon’
At the same time, Maldivian President Mohammed Muizzu has said on Wednesday that by increasing its defense capabilities, Maldives will soon reach the point where there will be no presence of any “foreign” military contingent. A few weeks ago he had demanded India to withdraw its troops from Maldives.
Muizzu, who came to power by adopting an anti-India stance, had a day earlier announced that the Maldives would retain autonomous control over all its territories, including maritime, air and terrestrial areas, besides enhancing the country’s capabilities to conduct underwater surveys.
Muizzu, seen as a pro-China leader, in his first address as President had said that the first group of Indian military personnel would be sent back from Maldives before March 10 and the remaining 10% of the military personnel deployed at the two aviation platforms would be evacuated. Will be back before May.