The Ambassador of China to the Maldives, Kong Xianhua, announced a decision to provide debt relief to the island nation, signaling Beijing’s confidence in the Maldivian government’s economic sustainability measures.
The announcement came during a ceremony held in the capital Male’ to mark China's 76th National Day.
Ambassador Kong stated that following successful consultations with stakeholders, measures to ease the Maldives’ significant debt obligations to China had been finalised. While specific financial details or the nature of the relief package were not disclosed, the envoy stressed the importance of the agreement.
"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."
The announcement follows a period of intensifying bilateral relations, which the Ambassador described as reaching a "whole new level" after President Dr Mohamed Muizzu’s state visit to China late last year.
Ambassador Kong voiced strong support for the current administration, noting that President Dr Muizzu is bringing about robust changes in the Maldivian economy.
Highlighting 53 years of diplomatic ties, the Ambassador also pointed to burgeoning economic cooperation beyond lending. He noted that the benefits of the existing Free Trade Agreement (FTA) are becoming increasingly visible. In addition, the Chinese envoy praised the Bank of Maldives (BML) for its introduction of Yuan accounts, which facilitates direct currency settlements and strengthens financial links between the two countries.
Ambassador Kong reaffirmed China’s commitment to prioritising cooperation with the Maldives, pledging continued assistance and support for the nation’s economic development priorities.