As Maldives Faces Debt Default, China Inks New Finance Pact. Details Here

Beijing: 

China and Maldives have signed a new agreement today that allows Beijing to lend more financial support to the already debt-distressed nation. China’s central bank has said the pact will also help strengthen trade and investment.

The memorandum of understanding or MoU between the People’s Bank of China and Maldives’ Economic Development Ministry allows Beijing and Male to boost direct investments and permit local currency settlement for current account transactions.

China has not revealed anything else about the agreement. Maldives, which is already facing a massive debt, is barely managing to avoid default.

In a statement after the agreement, China’s foreign ministry said it has active communication with Maldives over its mounting debt to Beijing and is increasing its financial cooperation.

“China will, as always, provide support and assistance to the economic and social development of the Maldives within its capability,” Mao Ning, a Chinese foreign ministry spokesperson said.