Governor of Maldives Monetary Authority (MMA) Ali Hashim has stated all banks have assured cooperation for the government’s decision to defer the repayment of all loans by six months.
Governor Hashim stated all banks have agreed to comply with the decision of the government to place a moratorium of six months on all bank loans, in order to minimize the financial impact on individuals and businesses due to the COVID-19 pandemic. He added the banks will individually issue statements on the procedure customers must follow to avail themselves of this moratorium.
While President Ibrahim Mohamed Solih announced the government’s decision to defer the repayment of all loans, including student loans and business loans, only Bank of Maldives (BML) has issued an official statement announcing the moratorium of six months. BML stated loan repayment will be suspended from April 1 to September 30, adding the monthly repayment amount will also be reduced by 20% for the first six months after the end of the moratorium. BML stated the interest charged during the moratorium period will be added to the outstanding loan amount and spread over the remaining period of the loan.
Furthermore, BML stated the moratorium will apply for all housing, business and personal loans. The bank added the moratorium will be offered for customers who do not have overdue payments.
Meanwhile, the repayment of loans issued by SME Finance Development Corporation (SDFC) and Housing Development Finance Corporation (HDFC) has also been deferred by six months. The moratorium was applied by the two corporations from March onwards.