IMF warns of Maldives foreign debt crisis, after China borrowing [Video]

The strategically-placed Indian Ocean nation of the Maldives, which has borrowed heavily from China and shifted allegiance from India, is at high risk of “debt distress,” the IMF warned Wednesday.

Beijing has pledged more funding for the Maldives since pro-China President Mohamed Muizzu took power in November.

Muizzu thanked China last month for its “selfless assistance” for development funds after a visit to Beijing.

The International Monetary Fund did not give details of the Maldives’ foreign debt but said there was a need for “urgent policy adjustment”.

“Without significant policy changes, the overall fiscal deficits and public debt are projected to stay elevated,” the IMF said after a review of the country’s economy.

“The Maldives remains at high risk of external and overall debt distress”.

The archipelago, famed for its white sand beaches and where tourism accounts for nearly …