According to recent data released by the Maldives Monetary Authority (MMA), banks and financial institutions in the Maldives have issued loans amounting to MVR 40 billion to various sectors, including private businesses and individuals. The central bank’s January statistics reveal that these loans and advances were recorded until December, with the tourism industry receiving the largest share.
The tourism sector, crucial to the Maldivian economy, received loans totalling MVR 12.4 billion. This is indicative of the sector’s significant demand for financial support and its dominant role in the national economy. Following closely, the construction industry was the next major recipient, with loans amounting to MVR 7.7 billion. Personal loans also constituted a substantial portion of the lending, totalling MVR 5.7 billion, while business loans and those in the transport and communications sectors were MVR 4.8 billion and MVR 3.7 billion, respectively.
Over the past five years, the MMA data shows that banks have disbursed loans worth MVR 13.9 billion. The year-on-year analysis of loan disbursement highlights a growing trend, with last year witnessing the highest amount of loans disbursed at MVR 4.6 billion. The breakdown over the years shows a varying trend, with MVR 1.9 billion in 2019, MVR 2.8 billion in 2020, MVR 2.3 billion in 2021, and MVR 2.1 billion in 2022.
The tourism industry, a key driver of the Maldivian economy, has consistently been the top beneficiary over this period, receiving MVR 3.9 billion in loans over the past five years. This reflects the industry’s continuous need for financial infusion for growth and expansion. Private individuals also formed a significant portion of the loan recipients, with MVR 3.5 billion disbursed to them during this period. The data indicates a significant increase in the value of loans across all sectors, except for a notable decline in the manufacturing sector.
The focus on tourism and construction underlines the country’s economic priorities, while the increase in personal loans reflects the growing consumer financial needs.
