China’s Influence Backfires? Maldives Teeters On Bankruptcy, India Steps In With Lifeline | World News
Male: After Pakistan and Sri Lanka, another neighbor of India is now struggling with a serious economic crack. The country’s usable foreign exchange reserves reached a record level. Until the end of August, only 18.8 million dollars remained – inadequate to meet one -month imports.
At this critical hour, India came to the forefront as a supportive partner and extended its reimbursement deadline for a year of $ 50 million for a year. India also announced that there will be no interest in this extended period.
Maldives face bankruptcy
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Maldives on the edge of bankruptcy. Foreign debts in Maldives are increasing sharply as the main lenders with China and India. Ulus faces $ 600 million in 2025 and a foreign debt reimbursement of $ 1 billion in 2026. The Maldive economy depends on a serious blow during the COVİD-19 pandemia and a recent decline on Indian tourist beaches.
Central Bank data reveals a crisis
According to the Maldives Monetary Authority (MMA), the usable foreign reserves fell $ 2.5 million in August. In July, the available reserves were $ 21.3 million and fell to $ 18.8 million by the end of August. The usable reserve calculation takes into account minus short -term loans of total reserves and includes the dollar deposited in domestic banks.
Chinese ties exacerbates Maldives’ troubles
President Mohammed Muizzu of the Maldives is considered a close ally of China. In the first year of his presidency, the relations between India and Maldives saw a significant coercion. Muizzu ordered Indian troops to withdraw from the Maldives and stopped the functioning of Indian helicopters, Dornier planes and a patrol ship.
However, in recent months, Muizzu has varying in the approach that accepted the importance of Maldives-India relations and giving priority to cooperation with India.
