Chinese Ambassador to the Maldives Zhang Lizhong have said that even though China has provided 1.5 billion dollars as loans to Maldives, none of it was given as cash to the government.
Speaking to Miadhu News, the Chinese Ambassador said that China arranged 700 million dollars as loan facilities and 600 million has been used. He said that those loans were provided at an interest rate of 2 percent.
The ambassador said that, in addition government companies were provided with a loan facility of 900 million dollars but those have not been used yet. “China arranges loans in a way that the Chinese banks will pay for the expenses for work done. So, the government will not get any money. Chinese companies will get it. Loans were given with a grace period of 5 years and have to be returned within 20 years said the ambassador.
On Saturday, a Chinese researcher stated that China does not assist to achieve a political agenda but for economic and social development of Maldives.
Hu Zhiyong, a research fellow at Shanghai Academy of Social Sciences stated that the government of China facilitated 1.5 billion dollars to Maldives and the loans were used to conduct projects that were economically and socially beneficial for the nation. Hu stated that these projects were conducted under Belt and Road Initiative of China.
“Indian PM Modi says that India will assist Maldives economically. Just wait and see whether India does not act in a way which will result in economic independence of Maldives. At the end, Maldives will become economically dependent on India” said Hu.
