Minister of Economic Development Fayyaz Ismail has stated the loans issued by the administration to local businesses are economic relief packages, intended to ensure businesses do not go bankrupt during the COVID-19 pandemic.
Speaking at the daily press briefing held at National Emergency Operation Centre (NEOC), the economic minister said although the packages were initially introduced as stimulus packages, the economic situation of the country has changed drastically since the packages were first introduced. The minister said the loans issued by the administration are economic relief packages for 3 months, intended to prevent businesses from going bankrupt during the period. He added the loans are not intended as stimulus packages, which are issued to reinvigorate businesses and overcome the current situation.
The economic minister further added the economic relief packages serve as immediate assistance to floundering businesses, which helps to protect small and medium enterprises (SMEs) and the jobs of locals working for bigger companies. The minister noted the SME Bank has received a total of USD 26 million to assist SMEs in the Maldives. He added 8,000 SMEs are registered in the Maldives, while approximately 2,000 individuals operate unregistered businesses at homes.
The administration has announced businesses can apply for economic relief loans at Bank of Maldives (BML) and SME Development Finance Corporation (SDFC). The loans are issued at an interest rate of 6%, with a repayment period of 3 years.