Covid Relief Loans Worth MVR 578 Million Issued to Large-Scale Businesses

Bank of Maldives (BML) has issued over MVR 578.5 million in loans to large-scale businesses struggling to mitigate the financial impact of the COVID-19 pandemic.

Statistics released by the Finance Ministry show that MVR 578.5 million and USD 8 million in loans to 422 large-scale businesses were issued through BML as of 30th December 2020.

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A total of 602 businesses have applied for relief loans from BML. The applications of 437 businesses have been approved so far, while the applications of 20 businesses have been rejected for various reasons.

The COVID-19 recovery loan scheme was introduced by the Maldivian government to support businesses overcome the financial impact of the prevalent pandemic. While resorts businesses are eligible for up to MVR 7.7 million, non-resort businesses are eligible for up to MVR 1 million in loans under the scheme.

The eligibility criteria for resorts stipulates that they need to have no nonpayment of assets at a financial institute and no overdue loan or financing facility. The resort must also have been profitable last year, and must have positive projected cash flow for the last three years.

Other businesses are eligible for loans under the scheme if they produced an annual turnover above MVR 10 million, have no NPA, loan, or financing facility due at a financial institute. They must have also been profitable last year.

Loans issued under the scheme have an annual interest rate of 6 percent, and a repayment period of three years.

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