China’s friendship was heavy, Maldives on the path of becoming Sri Lanka? Now spread hands in front of the world:

News India Live, Digital Desk: Maldives Foreign Reserves: Maldives, known for beautiful blue sea and magnificent resorts, today stands at the mouth of a big economic crisis. The condition has become so serious that the country’s treasury is almost vacant and China’s huge debt has been raised on it. The country which was showing eyes to India until some time ago, is knocking on the door of the International Monetary Fund (IMF) for help.

After all, how did such a bad condition happen?

China is believed to be the biggest character behind the story of this ruin of Maldives. China’s “debt trap” policy has put many small countries in trouble and Maldives seems to be a fresh example of this.

1. China’s expensive debt: The current President of Maldives, Mohammad Mujju, took a huge amount of debt to build infrastructure projects, such as airports and bridges, to increase the proximity to China. These projects look good to watch, but they are not earning so much that they can be repaid. Today, a large part of the total foreign debt of Maldives is from China alone.
2. Foreign exchange reserves ending: Any country needs dollars to buy essential goods (eg petrol, medicines, grains) from other countries, which is called foreign exchange reserves. According to reports, this treasure of Maldives has reduced to dangerous levels. It is being told that they have dollars left for only one or one and a half months of imports. If this money is over, then there may be a huge shortage of essential things in the country.

“India Out” policy was heavy

Ever since Mohammad Mujju’s government came ہے, he gave up the “India Out” campaign and spoiled the relations with India. India has always been a trusted neighbor and difficult friend of Maldives. The policy of distance from India and embracing China is now overshadowing the Maldives. When the crisis was cloudy, China did not get as much help as it was expected and due to poor relations with India, it became difficult to ask for help from there.

Now IMF is the last support

After being disappointed from all sides, the Maldives government has now started dialogue with the IMF for a large bailout package. Getting loans from IMF means that the country will get money to run, but in return they will also have to accept many strict economic conditions, which can have a direct impact on the general public.

This story of Maldives is a lesson for all those small countries of the world who consider China’s debt as a shortcut to growth. This shows how wrong policies and bad relationships with neighbors can bring a beautiful country to the brink of ruin.