SME Development Finance Corporation (SDFC) has decided to suspend the repayment period of loans issued to small and medium enterprises (SMEs) for six months.
Speaking at a press conference held to disseminate information on the situation of COVID-19 in Maldives, Spokesperson of National Emergency Operation Centre (NEOC) Mohamed Mabrouq Azeez said the administration has been working with the relevant institutions and authorities to help overcome the financial losses caused by the COVID-19 pandemic. In this regard, Mabrouq noted SDFC has decided to suspend the repayment period of loans issued for the development of SMEs in Maldives for six months. He added the repayment of interest will resume after six months, noting the interest rate of the next six months will be lowered to 4%.
SDFC was established as an SME bank by the administration in March 2019 to help the development of SMEs in Maldives. The corporation has provided loans worth USD 35.3 million to a total of 440 SMEs.
SDFC provides loans across four main sectors, including local tourism, agriculture and production, information technology as well as fisheries. SDFC has also allocated certain percentages of its loans to youth, women and disabled entrepreneurs.