Maldives Fitch Rating : When Pakistan got caught in China’s trap, its economy was in trouble. Now the same has happened with Maldives. Maldives is also on the verge of default. International credit rating agency Fitch has issued a warning regarding this. Fitch has also reduced the credit rating of Maldives. Fitch has warned that the South Asian country may default on repaying its debt.
Maldives may face problems in repaying its international loans because its debt burden is increasing. Recently, the International Monetary Fund (IMF) had warned that Maldives is facing the threat of debt. This warning came when Maldives expressed its intention to take more loans from China. At present, China is the country with the highest debt.
Maldives caught in China’s debt trap
Now Fitch has also reduced the rating of Maldives from B minus to triple C plus. Triple C rating is given to those countries where the possibility of financial crisis is high. Fitch said in a statement that in May, the international currency reserves of Maldives had come down to $ 49.2 crore. The agency said that this year Maldives has to pay $ 40.9 crore as loan installments, which means that the pressure on it can increase a lot.
Maldives will remain dependent on aid from other countries. According to the data, Maldives had a debt of $ 4.038 billion till last year, which is 118 percent of its total GDP. Between 2022 and 2023, the debt increased by about $ 250 million. China has the highest debt in this. Data till June 2023 shows that 25.2 percent of Maldives’ total debt has been given by China’s Export-Import Bank.
Had a mess with India
Maldives President Mohammad Moizzu had messed with India. He had raised slogans of India Out at the behest of China. Due to which the Indian Army soldiers had to return from Maldives. As soon as he became the President, Moizzu also visited China. In return, China promised to send more tourists to tourism-dependent Maldives and announced a grant of 130 million US dollars. When PM Modi shared his pictures in Lakshadweep, Maldives got angry, after which the number of tourists in Maldives fell significantly. Maldives is suffering a lot due to this.
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