IMF Warns of High Debt Distress Risk for Maldives Amid Growing Ties with China

The IMF has warned that the Maldives is at high risk of debt distress due to heavy borrowing from China and a shift in allegiance from India under President Mohamed Muizzu, who has received increased funding from Beijing. The IMF emphasized the need for urgent policy adjustments to address the country's elevated fiscal deficits and public debt. This warning comes as several South Asian countries, including Pakistan and Sri Lanka, grapple with economic crises resulting from heavy borrowing from China as part of President Xi Jinping's Belt and Road Initiative.