"IMF Warns of High Risk of Debt Distress for Maldives Amid China Borrowings"

The Maldives, heavily indebted to China and with a shifting allegiance from India, is at high risk of "debt distress," according to the IMF. President Muizzu has expressed gratitude for China's assistance, but the IMF warns of the need for urgent policy adjustments to address the country's fiscal deficits and public debt. With tourism as a major economic driver, the nation faces uncertainty despite recovery from the pandemic, and its heavy reliance on Chinese debt poses significant risks.