After borrowing heavily from China, Maldives at high risk of ‘debt distress’, warns IMF

News Snapshot:

The International Monetary Fund (IMF) on Wednesday warned that Maldives, which has borrowed heavily from China and shifted allegiance from India, is at high risk of “debt distress.” After a review of the country’s economy, the IMF said there was a need for “urgent policy adjustment” even though it didn’t share the details of the Maldives’ foreign debt. “Without significant policy changes, the overall fiscal deficits and public debt are projected to stay elevated,” AFP quoted the IMF as saying. Beijing has pledged more funding for the Maldives since pro-China President Mohamed Muizzu took power in November. Muizzu thanked China...