Minister of Finance discloses stimulus package details

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Maldives state have been taking several preventive steps to ensure reduced impact on locals, businesses

The Maldives Minister of Finance Mr Ibrahim Ameer has disclosed details related to the economic stimulus package by government in light of COVID-19 pandemic’s adverse effects.

Earlier, Maldives government announced of a MVR2.5 billion worth stimulus package under the Economic Recovery Plan which was announced by President Ibrahim Mohamed Solih.

Maldives government have been taking crucial steps to ensure the economic loss and impact of individuals and businesses are reduced to the best possible extent.

Key decisions pushed or endorsed under Maldives government include;

  • Issuance of loan for working capital to local businesses and entrepreneurs
  • Partial subsidization on utility bills for a 2-month period
  • 6-month moratorium by Bank of Maldives on principal and interest payment of housing, business and personal loans
  • 6-month moratorium on principal and interest payments of loans issued from SME Development Finance Corporation (SDFC) – inclusive of the reduction of loan interest rate by 4%
  • 6-month postponement on the repayment period of loans granted under National Student Loan Scheme

Additionally, Maldives government will be providing an allowance for individuals losing their employment due to the after-effects of the viral pandemic.

Working capital loans for businesses and financial assistance for local entrepreneurs or self-employed individuals will be issued through Bank of Maldives and SME Development Finance Corporation (SDFC).

Loans will be issued at a 6% interest rate with a grace period of six months. However, the interest and principal will be not subjected during the grace period, while loan repayment period is distributed to a 3-year duration.

Under the Economic Recovery Plan, state is set to provide funding assistance to local tourist resorts through loans issued from BML. According to state, each resort is subjected to a maximum of MVR7.71 million of financing.

Additionally, resorts will be assessed based on the local ownership percentile as well as on the percentile of local employees. Priorities will be given to properties which hold a local employment at 45% or above.

Moreover, state with assess if the resort properties or businesses possess non-performing assets, profit ratio during the fiscal year of 2019 and a prospective forecast on the cash-flow of the business for the upcoming 3-year period.

In addition to this, state will observe if businesses have forced on its employees to take no-pay leaves or redundancies.

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