The SME Development Finance Corporation (SDFC) has resolved to reimburse excess payments made on Covid recovery loans facilitated, following President Dr. Mohamed Muizzu's decision to waive all interest accrued on loans issued by the former government during the COVID-19 pandemic.
SDFC announced its decision to deduct the accrued interest payment on loans issued by the prior administration from the initial loan principal. This means that any additional payments made will be reimbursed accordingly, including those already settled.
Moreover, SDFC conveyed that applications for this relief will be facilitated after the Eid al-Fitr holidays through its customer portal.
Furthermore, it has informed that the repayment period for those who availed of the COVID-19 Recovery Loan Scheme for SMEs will be extended. The repayment period will now be extended to 10 years from the date of issuance.
Notably, USD 22.84 million had been issued as part of the COVID-19 Recovery Loan Scheme for SMEs, addressing the challenges faced by small and medium-sized entities. The maximum amount was provided to firms engaged in the exchange of commodities, with USD 13.02 million disbursed to 846 individuals working in that sector.