Maldives China Debt: India's debt to neighboring Maldives poses threat of ruin. According to the Maldives government, China has a debt of three billion dollars on the country. In the Corona era he is finding it very difficult to repay it..
In the name of Male Belts and Road Project, China, which is trapped in a debt trap, seems to be successful in its cause. After Sri Lanka, Maldives, another neighboring country of India and a close friend, is under the debt of China. According to the Maldives government, China has a huge debt of $ 3.1 billion on the country. That too when the entire economy of Maldives is worth about $ 5 billion. In the Corona crisis, Maldives is now afraid of default.
According to the BBC report, the entire economy of Maldives depends on tourism. The tourism sector of Maldives has been badly affected by the Corona virus crisis. Maldives earns about two billion dollars each year from tourism, but it is expected to decrease by a third due to Corona. If the corona virus persists, the Maldives may suffer a loss of $ 700 million this year.
China's total debt of about $ 3.1 billion: Former prime minister of Nasheed
Maldives and present day parliament speaker Mohammad Nasheed says that China's total debt on the country About $ 3.1 billion. This includes loans taken between governments, loans to government companies and loans to private companies, which have been guaranteed by the Maldives government. Nasheed fears that the Maldives may be trapped in China's debt trap.
Nasheed questioned the feasibility of the infrastructure project in the country for which loans were taken from China. He said, 'Will these projects give so much revenue that the debt can be repaid through them? The business plan of these projects does not indicate that the loan can be repaid. Nasheed said that with the help of China, the cost of ongoing projects in the country has also increased manifold. Not only this, the amount of money received is more on paper. He claimed that Maldives received only $ 1.1 billion in aid.
Pro-China Abdullah Yameen took a massive loan
In fact, in the year 2013, the pro-China government of Abdullah Yameen in Maldives took a large loan from China in the name of infrastructure projects in the country. Now this billion dollar loan has become a sore throat for the present government. China had given this money to the Maldives government as part of its belt and road project. After the arrival of the new government in Maldives, it is now investigating the economic health of the country. There are many shocking revelations in this.
China is increasingly entangling the world in its debt trap. Laos has become the new victim of this dragon's date trap diplomacy. In the event of billions of dollars of Chinese debt not being repaid, Laos has had to hand over its power grid to a Chinese state-run company. According to the report of Harvard Business Review, the Chinese government and its companies have given loans of more than 150 countries for $ 1.5 trillion, or 112 lakh 50 thousand crore rupees.