Minister of Economic Development Fayyaz Ismail reveals the loans for small and medium sized businesses will be issued via the SME Bank rather than a loan scheme such as the GetSet Initiative, launched by the past administration.
Speaking to PSM News, Economic Minister Fayyaz Ismail noted between 13-20 million US dollars was granted under the GetSet Initiative, highlighting a large percentage of the loans were not paid back. The economic minister stated the past administration granted loans without ensuring the business would be feasible or can be maintained.
While the deadline for the applications for the third round of GetSet Initiative was July 1, Minister Fayyaz added loans would not be issued by the current administration, but rather loans would be issued from the SME Bank established by the administration. The minister noted challenges are faced for individuals in attaining loans for small businesses from the existing banks in the country.
The economic ministry revealed a SME bank serving especially for small and medium sized businesses will be established by the end of January, adding the bank will be established under the laws and regulations of Maldives Monetary Authority (MMA).