Chinese Ambassador to the Maldives Wang Lixin has said that China is not looking to restructure loans but prioritising providing grants to the Maldives at present.

According to World Bank, Maldives owes USD 1.37 billion to China in sovereign guarantees.

Responding to a question by the media on whether China is planning to restructure loans or provide easy payment options, Ambassador Lixin on Thursday said that China is not considering loan restructuring at present. She added that it would create further challenges to Maldives to secure foreign capital in future if loans are restructured.

Ambassador Lixin further said that talks are underway to make loan repayment easier even if the loans are not restructured. She added that it is China's policy to ensure that the country's debts do not increase further.

"At present, China is issuing grants to the Maldives. The priority is to provide grants to the country, not to increase the country's debt," the Ambassador said.

The Ambassador said that despite china's efforts to do a lot of things through grants, the Maldives needs to do more to become an economically self-reliant country. He said the priority should be to diversify industries in the country and increase revenues.

She added that China hopes that the Maldives will not have to ask for financial assistance from other countries.