Maldives not bankrupt, just under huge debt; Guess how many dollars?

The Maldives is currently facing significant economic challenges, with a substantial amount of debt totaling nearly USD 4.038 billion, both externally and internally. While the country has not yet declared bankruptcy, it is heavily burdened by its debt, with a looming crisis expected by 2026.

Mohammed Muizzu, the leader of the Maldives, has sought financial assistance from various countries, including Turkey and China, but has faced difficulties in securing support.

Of particular concern is the substantial Chinese debt, which accounts for nearly 30% of the Maldives' external debt, with sovereign bonds set to mature in 2026. Despite Muizzu's efforts to seek assistance from China, as well as from other nations, such as Turkey, the response has been limited, exacerbating the economic crisis.

In addition to economic challenges, there are geopolitical tensions at play, with India closely monitoring the situation. India has shown readiness to assist the Maldives in case of a humanitarian disaster, despite Muizzu's perceived anti-India stance. The Indian government has also taken proactive measures, such as extending the air strip at Agatti islands and commissioning a new air base at Minicoy islands, in anticipation of potential needs in the region.

Furthermore, India is cautious about China's involvement in the Maldives, particularly through its Belt and Road Initiative (BRI). Many countries, including Pakistan, Kenya, and Tanzania, have experienced difficulties repaying loans from Chinese EXIM banks associated with the BRI, leading to skepticism among the Maldivian public regarding China's infrastructural development projects in the country.

Overall, the Maldives faces a complex economic and geopolitical landscape, with debt challenges, political tensions, and competing interests from regional powers shaping its future trajectory.