Maldives government’s proposed plan for the upcoming year has allocated MVR450 million to SME Development Finance Corporation (SDFC) for the development of local SMEs.
Minister of Finance Ibrahim Ameer while presenting the proposed state budget for the upcoming year to Maldives parliament assured loans will be provided for local small and medium enterprises or startups.
From the allocated MVR450 million, MVR400 million will be issued to SDFC as the capital with the remaining MVR50 million used to invest on loan provisions for local SMEs under the SME Act.
“As capital state will issue MVR400 million to SDFC for 2020, and we aim to issue capital for a period of three years while ensuring the bank becomes independent without relying on government for acquiring capital in the future,” Minister Ameer noted.
The SDFC bank was formed under the incumbent government in a bid to ease access for local entrepreneurs in seeking funding for their ventures and startups.