Top Chinese bank, ICBC to open Maldives branch

Work is underway to open a branch of China’s biggest bank, the Industrial and Commercial Bank of China (ICBC), in the Maldives, according to Maldivian Economic Minister Mohamed Saeed.

Founded in 1984, ICBC is now the world’s largest bank in terms of total assets.

In an interview to Public Service Media (PSM) on Friday, Saeed said that Maldivian President Dr. Mohamed Muizzu engaged in extensive discussions with Chinese President Xi Jinping regarding ways to improve Maldives’ economic situation during his visit to Beijing earlier this year.

He said that one of the things President Muizzu proposed during the visit is to open a ICBC branch in the Maldives.

“One of the proposals President Muizzu made to the Chinese government includes opening in the Maldives a branch of ICBC – which is the largest bank in China and also in the world. Negotiations remain in progress,” he said.

Saeed said that President Muizzu also discussed increasing tourist arrivals from China and having flights from more Chinese cities.

Saeed said that the free trade agreement between Male’ and Beijing was complete, and would be “activated” at a time of mutual agreement.

On Friday, the Maldivian government signed a Memorandum of Understanding with the People’s Bank of China (PBOC) to establish a framework for settlement of current account transactions and direct investments in local currencies.

China is one of Maldives’ biggest trade partners, with over USD 700 million in bilateral trade. It is also the top source market for tourist arrivals to the country.

The Maldivian government is also working on forming a similar agreement with India – another top trade partner.

Maldives faces a mounting external debt crisis and declining foreign reserves. The government has been taking measures to ease the reliance on US dollars, and boost US dollar revenue streams. This includes tax reforms to have companies that generate US dollar revenues pay certain taxes in the foreign currency.