A February 16, 2024, tweet purportedly said that the Maldives had filed for bankruptcy and was looking for an IMF bailout. This claim has not been verified.

The Maldives is a strategically located country in the Indian Ocean that is primarily dependent on tourism and money from China. The IMF awarded USD 56 million in grants, USD 28.9 million from the Rapid Credit Facility (RCF), and USD 196 million in loans to the Maldivian government in 2020.

On February 7, 2023, the International Monetary Fund (IMF) issued a warning to the Maldives about their increased danger of experiencing “debt distress” due to their growing proximity to China. A pro-China administration currently rules the strategically significant country.

Since Mohamed Muizzu became President of the Maldives,

The island nation is choosing several strategies to promote tourism, like as expanding its airport and building more hotels. The IMF stated that although increased infrastructure is expected to lead to a rise in tourism, “uncertainty surrounding the outlook remains high and risks are tilted to the downside.”

Under previous President Abdulla Yameen’s administration, the Maldives took out large loans from China for building projects. By 2021, the World Bank estimates that the Maldives owed China over 42% of its total foreign debt of over $3 billion.

The Maldives is moving away from India as it gets closer to China. By May 10, Indian soldiers flying three spy planes in the Maldives are expected to depart. In the meanwhile, Muizzu has