Loan deferments should result in rent cuts in capital

Parliamentary Committee on Economic Affairs has stated that the alleviations provided by the government to personal housing loans should result in the reduction of rents in the capital city of Male’.

Due to the ongoing situation with COVID-19, the government has initiated deferments to personal and housing loans from the Bank of Maldives.

The move has resulted ina mixed outcome. A reduction of rent payments in some households of the capital where the majority of the country resides in has been observed. However, there are still some households that have not followed suit and still imposed the full rent payment on tenants.

A motion was presented by Central Henveiru MP Ali Azim to find out the view of the parliament regarding the implementation of the programs initiated by the government to alleviate the negative impact of the pandemic virus on the income of families and businesses.

In the report issued by the Economic Committee regarding the matter, the committee stated that the rent payments of the capital should in fact be reduced with the easements.

The report also stated that businesses capable of repaying the relief packages of the government should be arranged a reliable amount and also called to increase the amount provided for SME businesses. The report also stated that the package should provide a sizeable amount that would cover the recurrent costs of such businesses.

The committee also stated that updates, details as well as government operations regarding the relief packages should be provided to the parliament in a timely manner every 15 days.