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FinObservatory

Chinese overseas lending / MDV

Maldives: debt owed to China

In 2021, Maldives is estimated to have owed China $1.41bn, equal to 26.8% of its GDP, which ranks it 54 of 126 borrowers in the panel by dollars owed. The estimated stock peaked at $1.41bn in 2021.

$1.41bn
Estimated total, 2021
rank 54 of 126
26.8%
Percent of GDP
2021
$1.41bn
Public and publicly guaranteed
2021
$0
Private non-guaranteed
0.0% of external

The estimated stock, 2000 to 2021

The largest single-year move in the estimated stock is 2017, when it rose by $388m.

Public and publicly guaranteedPrivate non-guaranteedPBoC swap drawings

Source: Horn, Reinhart and Trebesch, China’s Overseas Lending. Selection: estimated stock owed to China by Maldives, by year and instrument, 2000 to 2021. Zeros are estimated zeros (no known loans outstanding), not missing values. Methodology

Against what Maldives reports owing to all creditors

Maldives reported $4.10bn of total external debt to all creditors in 2021, of which $3.13bn is public and publicly guaranteed. The China estimate is 34.3% of the reported external total and 44.9% of the reported public and guaranteed stock. These are ratios of two different measurements, one estimated and one borrower-reported, and they are not a share of a single consistent total.

Measure, 2021Estimated, owed ChinaReported, all creditorsRatio, %
Total external debt$1.41bn$4.10bn34.3%
Public and publicly guaranteed$1.41bn$3.13bn44.9%

Source: Horn, Reinhart and Trebesch, China’s Overseas Lending (estimated stocks), and World Bank International Debt Statistics, borrower-reported via the Debtor Reporting System (all-creditor stocks). Selection: estimated external and PPG stock owed to China in 2021 against Maldives's reported DT.DOD.DECT.CD and DT.DOD.DPPG.CD for the same year. Drawn swap balances are excluded from the estimated column: they are a central-bank liability the Debtor Reporting System's long-term-debt concepts do not carry. Methodology

Chinese restructurings involving Maldives

1 deal recorded between Maldives and Chinese state creditors. These are context, not accounting: the source records face-value reduction as a flag rather than a magnitude, so no haircut percentage exists for them, and nothing here is netted off the estimated stock above.

2019Debt rescheduling only

Creditor: China Ex-Im Bank

China grants a 4-year debt service deferral on 600 mn in outstanding debt.

Kratz et al. (2020)

Source: Horn, Reinhart and Trebesch, Hidden Defaults (World Bank Policy Research Working Paper 9925). Selection: every recorded restructuring agreement between Maldives and a Chinese state creditor. Face-value reduction is a 0/1 flag in the source, not a percentage; the badge appears only where the source sets it. Methodology