Economic Minister Mohamed Saeed has announced that the Maldives will establish a Development Bank this year. The bank’s focus will be providing long-term loans and financial assistance to support economic development projects.
Development banks offer loans, grants, and technical expertise to government agencies, private businesses, and organizations operating in sectors like infrastructure, agriculture, education, healthcare, and renewable energy.
Minister Saeed’s announcement came during a rally in Hoarafushi as part of President Dr Mohamed Muizzu’s tour of northern provinces. Minister Saeed emphasized that the President recognizes the limitations of the existing banking system in facilitating desired development goals, and the Development Bank will address these needs. “I assure the President that a development bank will be established within this year,” Minister Saeed stated.
Minister Saeed highlighted that the bank will support the government’s key objective of expanding housing finance options: it will facilitate loans and funds for development and serve as an intermediary to expedite housing initiatives. Such initiatives include the introduction of soft loans at 5% interest and the establishment of a “housing trust fund.”
