The Chinese Ambassador to the Maldives, Kong Xianhua, has announced that China will grant debt relief to the Maldives, underscoring Beijing’s confidence in the island nation’s fiscal reforms and economic sustainability.
The announcement was made on Tuesday in Malé during a ceremony marking the 76th National Day of the People’s Republic of China.
In his address, Ambassador Kong emphasized the enduring friendship between China and the Maldives, recalling the significant progress made since the establishment of diplomatic relations 53 years ago. He noted that ties had been elevated further following President Dr Mohamed Muizzu’s state visit to China last year.
Expressing strong support for the government’s fiscal policies, the Ambassador disclosed that, after successful consultations with stakeholders, an agreement had been reached to ease the Maldives’ substantial debt obligations to China. While specific details of the relief package were not revealed, the Ambassador highlighted its significance:
"I am now proud to announce that after consultations with stakeholders, a decision has been taken to provide debt relief," the Ambassador confirmed.
"This demonstrates the Chinese government's confidence in the sustainability of Maldives' fiscal situation and the measures taken to improve it."
He described bilateral ties as having reached a "whole new level" since President Muizzu’s visit, and voiced confidence in the administration’s efforts to bring about robust economic changes.
Ambassador Kong also highlighted growing areas of economic cooperation beyond lending, pointing to the benefits of the Free Trade Agreement (FTA) and praising the Bank of Maldives (BML) for introducing Yuan accounts, which enable direct currency settlements and enhance financial links between the two countries.
Reaffirming Beijing’s commitment, the Ambassador pledged that China will continue to prioritize cooperation with the Maldives and extend support for the nation’s economic development agenda.
