Ministry of Finance has proposed a budget estimated at MVR 450 million for SME Development Finance Corporation (SDFC) for 2020.
Speaking while proposing the State Budget 2020, Finance Minister, Ibrahim Ameer said that the aim is to develop SDFC to have the capacity to issue about USD 26 million in loans per year.
Founded in March 2019, SME Development Finance Corporation (SDFC) was established by the current administration as a specialized institution to fill the gap, provide loans and monetary assistance to business starters and Micro, Small and Medium Enterprises (MSMEs) easily within one platform.
Finance Minister Ameer further highlighted the important role played by the private sector and medium-sized businesses in boosting the economy.
He stated that from the proposed budget, MVR 400 million will be allocated as part of the corporation’s capital and the remaining MVR 50 million will be used under the SME act to issue loans for MSMEs. The budget intends to establish a fund in SDFC to increase the capacity to provide loans without depending on the state.
The Finance Minister revealed that SDFC has issued loans worth USD 7.769 million so far. He also added that the corporation has received applications amounting to over USD 64.741 million.