On behalf of Chinese President Xi Jinping’s Dream Project Belt End, the Maldives, which is gravely trapped in the debt trap, is sweating to pay down debt. The situation is that the government of Maldives has to spend 53 percent of its total income to pay off the debt. Of this amount, 80% of the money must be returned to China. Former Prime Minister of Maldives Mohammed Nasheed, caught in the spiral of Chinese debt, felt pain on Twitter. Nasheed said we cannot pay off this Dragon debt even by selling my grandmother’s jewelry.
Currently, Maldives Parliament Speaker Nasheed tweeted: “ Today we are discussing the 2021 budget in Parliament (Majlis). Maldives’ debt repayment will represent 53 percent of total government income next year. Of this loan repayment, 80% of the money will go to China. It is not entirely affordable. Even though we sell our grandmother’s jewelry, we cannot pay off this debt.
Maldives, new victim of China’s debt trap, asked to pay installments between Corona
The Maldives are weighed down by China’s debt
Know that in the name of the Belt and Road project, China, which is trapped in the debt of the whole world, now seems to be fully succeeding in its cause. After Sri Lanka, the Maldives, another neighboring country of India and close friend, are in debt by China. According to the government of Maldives, China owes the country a whopping $ 3.1 billion in debt. That too, when the entire economy of the Maldives is worth around $ 5 billion. In the Corona crisis, the Maldives are now afraid of default.
According to the BBC report, the entire economy of the Maldives depends on tourism. The tourism sector in the Maldives has been severely affected by the Corona virus crisis. The Maldives earn around two billion dollars each year from tourism, but it is expected to decline by a third thanks to Corona. If the corona virus persists, the Maldives could suffer a loss of $ 700 million this year.
China’s total debt is around $ 3.1 billion: Nasheed
Mohammed Nasheed, speaker of the Maldives’ parliament, said China’s total debt to the country is around $ 3.1 billion. This includes loans between governments, loans to public enterprises and loans to private enterprises, which have been guaranteed by the government of Maldives. Nasheed fears the Maldives may be trapped in Chinese debt. Nasheed questioned the feasibility of the infrastructure project in the country for which loans have been taken to China.
Nasheed recently said, “Will these projects bring in so much income that the loan can be repaid through them?” The business plan for these projects does not indicate that the loan can be repaid. Nasheed said that with China’s help, the cost of ongoing projects in the country has also increased in multiple ways. Not only that, the amount of money received is more on paper. He said the Maldives had only received $ 1.1 billion in aid.
Pro-Chinese Abdullah Yameen took out massive loan
In fact, in 2013, the pro-Chinese government of Abdullah Yameen in the Maldives took out a large loan from China on behalf of infrastructure projects in the country. Today that billion dollar loan has become a sore throat for the current government. China had given this money to the government of Maldives as part of its belt and road project. Following the arrival of the new government in the Maldives, it is currently investigating the economic health of the country. There are many shocking revelations about this.
China is dragging the world more and more into its debt trap. Laos has become the new victim of this dragon’s date trap diplomacy. In the event that billions of dollars in Chinese debt were not repaid, Laos had to hand over its electricity grid to a Chinese state-owned company. According to the Harvard Business Review report, the Chinese government and its companies have granted loans to over 150 countries for $ 1.5 trillion, or 112 lakh 50 thousand crore rupees.