Maldives faces mounting debt but not bankrupt yet
PTC News Desk: Contrary to media reports, Maldives isn't bankrupt but faces a significant debt burden, with external debts reaching USD 4.038 billion. Internal debt mirrors this figure, hinting at a looming crisis by 2026. The nation's gross national income stands at USD 5.6 billion.
Despite seeking financial aid from Turkey and China, President Mohammed Muizzu faces limited support. Approximately 30% of Maldives' external debt is owed to China, with sovereign bonds due in 2026. The presence of a Chinese surveillance ship at Male's port raises concerns, although it's restricted from conducting surveys beyond Maldives' EEZ. India remains watchful, poised to assist in potential humanitarian crises.
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In response to Muizzu's anti-India stance, India focuses on strategic initiatives, including extending the Agatti island airstrip and commissioning a new airbase at Minicoy. Defence Minister Rajnath Singh will inaugurate the MH-60 R Sikorsky helicopter squadron in Kochi before heading to Minicoy to establish INS Jatayu.
Despite Muizzu's political maneuvers, Maldivians remain cautious of China's Belt and Road Initiative due to instances of debt distress in other countries.
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(Inputs from agencies)
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