Maldives' Chinese debt and political risk could lead to trouble in paradise
NEW DELHI (Reuters) - A victory for President Abdullah Yameen in a Sunday election in the Maldives could ramp up pressure on its finances, as the government stays the course on a Chinese-backed infrastructure boom that is in danger of swamping the economy.
The Maldives under Yameen has grown closer to China - to the alarm of traditional ally India - with China funding roads, bridges and an extension to the international airport as part of its Belt and Road Initiative (BRI) of infrastructure projects in almost 70 countries from Mongolia to Montenegro.
But a Chinese takeover of a port in neighboring Sri Lanka and problems in several other countries have led to fears the initiative is a debt trap to hook countries into China’s sphere. China dismisses that.
Yameen is seeking a second five-year term in the Indian Ocean archipelago known for its sun-kissed tourist beaches and diving.
Read more: https://www.reuters.com/article/us-maldives-election-debt/maldives-chinese-debt-and-political-risk-could-lead-to-trouble-in-paradise-idUSKCN1LY1QR?il=0
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