Speaker of the Parliament Mohamed Nasheed has suggested to restructure government debts in the form of loans. In a tweet made today, the former President said that the danger of debts lies in being unable to pay back the debt. he alleged that the loans incurred by former President Abdulla Yameen’s administration are to be paid back by President Ibrahim Mohamed Solih’s administration.
He continued on to state that the majority of the grace period for loans taken by the previous administration end within 2021-2023. He also hinted that the current administration would not be able to pay back the loans following the unprecedented recession in the Maldivian economy. Speaker Mohamed Nasheed ended his tweet with an advise to restructure the loans by the previous administration.
The loans mentioned in the tweets is likely to be Chinese loans as former President Mohamed Nasheed has been vocal with him making multiple allegations of a “Chinese Debt Trap”. Resident Chinese Ambassador His Excellency Zhang Lizhong has on multiple occasions clarified the issue. A video depicting the ambassadors views on critical matters was released on 22 September 2020. In the Video, the ambassador reiterated that China will not force the payback of any debts during hardship and that they Chinese government and firms are always open for discussion.