Male’, Maldives – Bank of Maldives (BML) has released more than MVR 555.7 million in loans to large businesses under the Maldivian government’s Covid-19 recovery scheme.
The Ministry of Finance has revealed that as of the 30th of last month, 602 business have applied for loans through BML, 417 of which, have been approved. Currently, loans have been released to 411 of the approved businesses.
The Ministry’s publications also noted that they received 141 incomplete applications and that there were 20 rejected forms.
Due to the impact of Covid-19 on businesses, the government introduced a MVR 2.5 billion recovery package for businesses, that is issued through BML.
BML’s website states that “this government scheme allows businesses financially affected by the COVID-19 pandemic to apply for financing. Bank of Maldives will administer the funds to all resorts, as well as any other businesses with over MVR 10 million turnover. This is an unsecured facility provided at 6% interest per annum with a repayment period of 3 years.”
The webpage also noted a grace period of 6 months, during which no interest or principal payments will be made and that eligible resorts can secure loans up to MVR 7.71 million, with non resort businesses allowed upto MVR 1 million in financing.
The eligibility criteria for businesses states that applicants should have been profitable in 2019, and that they must not have any non-performing facilities at any financial institution. Resorts have the same criteria, with an extra criteria of having a positive cash flow forecast for 3 years.
BML has made numerous efforts to support post Covid recovery efforts, and have recently brought favorable changes to multiple personal loans, and introduced a no mortgage Green Loan, and has offered Covid relief financing to Small to Medium Enterprises (SMEs) through funding from the European Investment Bank (EIB).