Maldives should learn from experience of other nations, in tackling debt issue: foreign minister

Maldives will try to benefit from the experiences of other countries, in dealing with the country’s huge debt, says Foreign Minister Abdulla Shahid.

Responding to a questionby India’sThe Hindu, on how the country plans to address the debt issue, the foreign minister said that Maldives “does not need to reinvent the wheel” to tackle the issue.

As such, the minister said that the government will be working closely with India, as well as “learning from other regional countries such as Malaysia and Sri Lanka, who have experience dealing with these difficulties.”

In addition, Shahid noted that the Maldives is getting “expert advice” from Japan and U.S. Treasury “to get a proper view of management of debt.”

The minister also highlighted that some of the country borrowings “are at a very high interest rate,” and noted that the government must look at means of refinancing some of the debt “to more affordable rates.”

Following the transfer of power last year, the finance ministry in December revealed that the Maldives’ national debt was at USD 3.7 billion, with 38% (USD 1.4 billion) owed to China.

Incumbent President Ibrahim Mohamed Solih previously stated that his predecessor’s administration had taken loans carrying high interest rates and short repayment periods, and that that his government will work to lengthen the periods and cut down interest rates.