The Chinese Ambassador to the Maldives, Zhang Lizhong has said that there is no truth to the allegations that China is going to ask for land and islands if the Maldivians fails to pay back the loans.

He said that it is a “baseless” narrative and the agreements between the two countries are made to benefit both countries as opposed to one-side deciding on all issues and taking advantage of the other.

“China has never pressed any country in difficulty for debt payment. Even in extreme cases in the future, the issue will be properly resolved through friendly consultations of the two sides in accordance with agreements and international practice.” Ambassador Lizhong said.

Taking to Twitter to express his take on the debt issue, the Chinese Ambassador said that the debt-trap" is a fiction.

“The so-called debt-trap is a fiction cooked up by some individuals. It is used as a political tool to disrupt the mutual beneficial cooperation between China and other developing countries. And to disrupt the Belt Road Initiative.”

Meanwhile, one prominent figure that has been vocal about the debt to China is the Speaker of the Parliament and former President of the Maldives, Mohamed Nasheed. The former President has accused China of trapping the Maldives with loans in the promise of development and said that China has to restructure the loans.