Speaker of the parliament and former President Mohamed Nasheed has said that around 50 percent of the income generated by the Maldives in the next two weeks would go to China as debt repayments.
Nasheed has consistently remained critical of the loans obtained by the former administration of President Yameen from China for various infrastructure development projects. He has also criticized China for sinking the Maldives into what he describes as a debt trap.
Nasheed in a tweet today said that the state had to pay USD 15 million to Chinese banks in the next two weeks, which is 50 percent of the estimated earnings.
“These banks have not, thus far, given any concessions for these loans. These repayments represent over 50% of government income over the next 14 days.” Said Nasheed.
Over the next 14 days, Maldives Treasury must pay over $15m to Chinese banks. These banks have not, thus far, given any concessions for these loans. These repayments represent over 50% of government income over next 14 days. After Covid, Maldives needs breathing space. ???????????? ????????♂️— Mohamed Nasheed (@MohamedNasheed) December 11, 2020
Nasheed has previously expressed concern over the 53 percent of the income to be spent on loan repayments as set out in the state budget for 2021. 80 percent of the debts the Maldives has, is to be repaid to China, according to Nasheed.
While Nasheed criticizes the former administration policies of obtaining loans from China, the current administration of President Ibrahim Mohamed Solih, who is from the same political party as Nasheed, are also receiving criticism by the opposition political parties for the obtainment of loans from India.