The Maldives, a collection of islands in the Indian Ocean, is facing money troubles because it borrowed a lot of money from China and has become closer to China instead of India. The International Monetary Fund (IMF) warned that the Maldives might have a big problem paying back its debts. The current president, Mohamed Muizzu, has been getting more money from China since he came to power in November. He even thanked China for helping with development projects.
The IMF is worried because the Maldives owes a lot of money to other countries, especially China, but the exact amount is not known. They say the Maldives needs to change its financial policies quickly to avoid getting into more debt trouble. The IMF says if things don’t change, the Maldives might struggle a lot with its money and its economy might get worse.
The Maldives is famous for its beautiful beaches and tourism, which is a big part of its economy. Even though the COVID-19 pandemic hurt its economy, plans to build more airports and hotels could help it grow again. But there’s still a lot of uncertainty, and the IMF thinks things might not go as well as planned.
Before Muizzu became president, the leader before him, Abdulla Yameen, borrowed a lot of money from China to build things like bridges and roads. Now, the Maldives owes a lot of its debt—about 42%—to China, according to the World Bank.
Muizzu wants Indian troops, who are helping with surveillance planes, to leave by May 10. He also wants to make the Maldives’ military stronger to protect its oceans. The Maldives is important because many ships pass through its waters.
In short, the Maldives is in a tough spot financially because it owes a lot of money, mostly to China. The IMF says it needs to change its financial plans fast. The president wants Indian troops to leave and is focusing on making the country’s military stronger to protect its seas.
