"IMF Warns of 'Debt Distress' as Maldives' China Borrowings Raise Risk"

The Maldives, heavily indebted to China and with a shifting allegiance from India, has been warned by the IMF of high risk of "debt distress." President Mohamed Muizzu, who has received support from China, faces challenges in managing the country's foreign debt, which is largely owed to Beijing. The IMF emphasized the need for urgent policy adjustments to address the elevated fiscal deficits and public debt. Despite economic recovery from the pandemic, the Maldives' outlook remains uncertain, with risks tilted to the downside. The nation's strategic location in the Indian Ocean and its reliance on tourism further complicate its economic and geopolitical situation.