Maldives-China Relations: Why did Maldives and China clash with each other over debt payments?

 14 Dec 2020 ( News Bureau )
POSTER

There has been a public outcry over debt payments between Maldives and China. There have always been concerns about China's debt in the Maldives, but the bickering hit the public stage last week.

The saying took place on Twitter between former President of Maldives and current parliament speaker Mohammad Nasheed and Chinese Ambassador to Maldives Chang Lichong.

Nasheed tweeted on 11 December 2020 that in the next two weeks, Maldives has to pay huge debt to Chinese banks.

His claim in this tweet was rejected by the Chinese Ambassador. The Chinese ambassador said that Maldives has to pay the debt but the amount is not as big as Nasheed claims.

Mohammad Nasheed is considered the most popular leader of the Maldives. He is also called pro-India.

Nasheed had said in his tweet, "In the next 14 days, Maldives has to pay $ 15 million somehow to the Chinese bank. Chinese banks have not given us any leeway in these loans. These payments are equal to 50 percent of the government's total income. Maldives is trying to recover somehow in the midst of the Corona epidemic crisis.''

Within two hours, the Chinese ambassador dismissed Nasheed's claims on Twitter. Chang Lichong said in response to Nasheed's tweet, "According to the information I have received from the banks, there is no loan payment of $ 15 million in the next 14 days. You check the account book and save it for the budget. Cheers.''

On 12 December 2020, the Chinese ambassador tweeted, "I have done some homework." The payment of debt of 17 lakh 19 thousand 535 in 2020 is correct. In Hulhumale Housing Project Phase 2, the loan amount of 23 lakh 75 thousand dollars taken for 1530 housing units is from a third country bank and not from China Development Bank. The debt in the Stelco project is to be paid in the second week of January 2021.'' The Chinese ambassador also posted some documents with this tweet.

In response to the Chinese Ambassador's tweet, a Twitter user quoted the Maldivian Ministry of Finance's statement as of December 31, 2018, "According to the annual report 2018, the Housing Development Corporation of Maldives set up 1530 housing units in Hulhumale Phase 3. For $ 4.2 million loaned from China Development Bank. If it comes to repaying this loan, then you will be able to show this screenshot, right?''

There was no response from the Chinese Ambassador on this. In such a situation, Mohammad Nasheed took it as an opportunity and tried to handle the situation.

Nasheed told the Chinese ambassador in his next tweet, "Thank you very much." Our relationship with China matters. Why should we wait for 11 more hours? Find some way out of this debt problem. Maldives needs another two years to repay the loan, otherwise we will never be able to repay these debts.''

Responding to Nasheed, the Chinese Ambassador wrote, "Respected Speaker, I appreciate your support. We have traditionally been friends and this is important to us. Discussions are already taking place on these issues. I am confident that there will be some concrete arrangement in terms of mutual benefit in both the countries so that it will help in bringing the economy back on track.''

Maldives and China have also clashed on Twitter before.

The current Chinese ambassador to the Maldives is known for his attendant response. The result of this is that their fans in Maldives are also very good.

In particular, supporters of former Maldives President Abdulla Yameen openly support the Chinese ambassador. After coming to power in 2013, Yameen grew closer to China than India. In many contract contracts, President Yameen chose China over India.

Yameen's supporters feel that China's ambassador is no less than an assistant to him in fighting the current government in the Maldives. The current government of Maldives is called pro-India.

In November 2020, Nasheed said that the debt of China cannot be repaid even if the people of Maldives sell their grandmother's jewelry too. In response, the Chinese ambassador said, "The jewelry of grannies is priceless but they have a price." I would prioritize friendship with Maldives which has no value.''

Another similar incident happened in November 2020. Dunya Maumoon, the daughter of former Maldives President Abdul Gayoom, was asked about an article in India Today on 10 November 2020. In this article, many things were said about Chinese investment in Male Airport.

The same day the Chinese ambassador told the daughter of former President Gayoom, "Read it as a fantasy." If you want the right information, take it from Maldives Airport.'' Gayoom was also considered as a Chinese-backed president.

Mohammad Nasheed said in an interview to the BBC in September 2020 that the Maldives had borrowed $ 3.1 billion from China. Nasheed had said that this included loans from both the Chinese government and the private sector there.

When the Maldivian Democratic Party of Nasheed came to power in 2018, Indian officials estimated the debt to be $ 1.5 billion.

Nasheed's party has been seeking financial help from India ever since it was formed. India has announced financial assistance of $ 1.4 billion to Maldives.

China and India are the centers of Maldives politics

Discussions in Maldives about China and India are hot in politics there. In September 2020, India Out campaign was being run on social media in Maldives.

Mohammad Nasheed then said that the India out campaign belonged to the ISIS cell. Nasheed had said that under this campaign, there is a demand to remove Indian soldiers from Maldives. The main opposition party was airing the India out campaign in Maldives. The main opposition party of Maldives says that the presence of Indian soldiers is against sovereignty and independence.

In response to the anti-India talk of the opposition party in Maldives, Foreign Minister Abdullah said that those who are "not digesting" the strong bilateral relations, are resorting to such criticism.

At the inauguration of an India-backed street lighting scheme, the foreign minister said, "This is a relationship between the two countries." It is a relationship connecting hearts. We thank him.

In August 2020, India announced a $ 500 million package, including a grant of $ 100 million. Earlier in 2018, India announced $ 800 million for the Maldives.

 

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