2017-12-09 20:33:27
Maldives will not face the problems faced by Lanka even if Maldives takes loans from China
Maldives will not face the problems faced by Lanka even if Maldives takes loans from China
Estimated time to read the article : 1 min, 23 secs
Sri Lanka had to give Hanbantota Port to China for 99 years because Sri Lanka failed to repay the loans they took from China. They took the loans to purchase weapons.
Lanka leased the port to China for 1.1 billion dollars and they have given 300 million dollars even now. This shows that they did not obtain this port just only as collateral for the loan.
Economists say that, Maldives is obtaining loans from China to develop vital infrastructure needed for the economic development of the nation. Projects like bridge, airport, housing and roads are developed through these loans. This will develop the capacity of the state to repay the loans. Hence it is unlikely that Maldives will meet the same fate as Sri Lanka.
According to government, the loans were obtained with a reasonable grace period and at low interest rate. President Yameen said that Maldives will not have to worry about going bankrupt or being indebt as a result of these loans.
Lanka leased the port to China for 1.1 billion dollars and they have given 300 million dollars even now. This shows that they did not obtain this port just only as collateral for the loan.
Economists say that, Maldives is obtaining loans from China to develop vital infrastructure needed for the economic development of the nation. Projects like bridge, airport, housing and roads are developed through these loans. This will develop the capacity of the state to repay the loans. Hence it is unlikely that Maldives will meet the same fate as Sri Lanka.
According to government, the loans were obtained with a reasonable grace period and at low interest rate. President Yameen said that Maldives will not have to worry about going bankrupt or being indebt as a result of these loans.