Maldives Monetary Authority (MMA) reveals that loans issued to individuals running private businesses increased by 8% during the first quarter of the year. Although this is a significant increase in the number of loans issued during the first quarter of 2023, it is a notable decrease in comparison to the loans issued in the last quarter of 2023.
The Quarterly Economic Bulletin Report released by MMA indicates that the loans issued for private businesses increased by 8% during the first quarter of the year, marking it a significant increase of USD155 million compared to the loans issued during the first quarter of 2023. Meanwhile, the increase of loans issued to private firms is a 9% decrease compared to the loans issued in the last quarter of 2023.
During the first quarter of the year, the largest amount of loans was disbursed by banks to the tourism industry, construction industry and for personal purposes. The MMA report shows that loans to the tourism and construction industry attributed to 36% of loans issued to private businesses. Furthermore, the report outlines that loans issued to the construction industry increased by 7% during this quarter, with loans mainly disbursed to build houses. It additionally stated that the loans provided for personal use progressed the most. In the first quarter, 25% of loans were issued to individuals for personal purposes.
MMA's Quarterly Economic Bulletin Report additionally includes comprehensive details on the tourism industry, which is the main sector contributing to the nation's economic development. It sheds light on the current stance of the respective industries, while outlining the anticipated changes it may face.
All the major economic industries, other than the fisheries' industry, experienced an expansion in activity during the first quarter of the year, according to the MMA's reports. As such, the tourism industry experienced the highest growth. While a total of 604,004 tourists visited the Maldives, the number of bed nights have also increased by 9%.