BML issues MVR 526 million in Covid-19 relief loans

Cinnamon Dhonveli Maldives.

Bank of Maldives (BML) has issued MVR 526.2 million in Covid-19 relief loans to 371 businesses.

Statistics released by Finance Ministry shows that by September 17, BML issued MVR 526.2 million in Covid-19 relief loans to businesses, including USD 7.5 million in loans.

566 businesses have applied for relief loans from BML so far, out of which applications from 405 businesses have been approved.

Meanwhile, 18 applications were rejected.

Under the Covid-19 recovery loan scheme, BML is offering up to MVR 7.7 million in loans to resorts, and up to MVR 1 million to other types of businesses.

The Covid-19 recovery loan scheme was introduced at the initiation of the Maldivian government, to support businesses mitigate the financial impact of the ongoing pandemic.

Resorts need to have no nonpayment of assets at a financial institute and no overdue loan or financing facility, and must have been profitable last year, and must have positive projected cashflow for the last three years in order to be eligible for loans under the scheme.

Other businesses, meanwhile, are eligible for loans under the scheme if they produced an annual turnover above MVR 10 million, have no NPA, loan or financing facility due at a financial institute, and were profitable last year.

Loans issued under the scheme have an annual interest rate of 6 percent, and a payment period of three years.