Maldives seeks assistance from India, faced with mounting debt

The Maldives is looking to India for help by providing monetary and budgetary assistance to overcome their mounting debt, some of which are results of dubious loan agreements.

Maldives foreign minister Abdulla Shahid said in a TOI report that Male was still trying to examine the implications of the debt accumulated by the previous government, suggesting that the figures provided by the government officials did not match the Chinese estimates. The Maldives is said to owe close to 70% of its external debt to China.

"We hope that India will be generous enough to help us with the initial management of any shortfall we might face. We know that the Indian government is fully equipped to help us deal with issues like fresh water scarcity, sewerage and with our focus on the health sector," said Shahid as quoted by news agency ANI.

Speaking about Maldives' debt problem, Shahid said that even though the Yameen government had given many sovereign guarantees to individuals as well as to state enterprises, the huge debt that it had incurred had not translated into projects.

Sources in Male state that the Yameen government was suspected of having pocketed a part of the grants that they received as well as earned commissions on soft loans. They state that the new government is looking closely at the controversial cost escalation of the recently inaugurated China-Maldives Friendship Bridge.

Shahid, who is set to visit China soon, indicated that Beijing will continue to be an important partner in the economic development of the archipelago. "Yameen played one country against another but we don't believe China can replace India or India can replace China. However, one thing which should be obvious is that the neighbourhood will get priority,” said Shahid.

Abdulla Shahid was quoted by ANI as saying that “The previous Govt under Yameen had increased anti-India sentiments for their own purposes, but that he intends on changing it. He also said that the Maldivian government would make sure that the Maldives-India relationship would be on a better footing under the present government.

The foreign minister also stated that no part of Maldives territory was going to be used for military purposes by any foreign nation. "We will review any such agreement which Yameen may have signed and renegotiate it," said Shahid.

India and the Maldives is also going to sign a visa agreement soon that will facilitate easy access for Indian professionals to the Maldives and for Maldivians who have families in India.

The foreign minister also said that “India is largest contributor for decades of our development. China contributes largest tourist arrivals and has been generous in assistance. India will always be a special friend. India's assistance can help the new government deliver on its promises to provide several services to the Maldivian people,” according to a tweet by ANI.