Interest on Covid loans for SME’s waived, repayment period extended

President Ibrahim Mohamed Solih a campaign rally held at Maaveyo Magu in Male’ City on September 21, 2023. (Photo/MDP)

President Ibrahim Mohamed Solih has announced his decision to waive the interest on ‘COVID-19 Viyafaari Ehee’ issued by Small and Medium Enterprises (SMEs) by SME Development Finance Corporation (SDFC) as part of the economic relief package pertaining to the COVID-19 outbreak.

Apart from the waiver of the interest – the president has also decided to extend the repayment period of the loan by 10 more years.

Therefore, money received previously as interest will be returned to the borrowers.

These decisions were announced during a campaign rally held at Maaveyo Magu in Male’ City on Thursday night. Speaking at the rally, President Solih said the decisions were made upon the request of many people.

“By the will of Almighty, with this decision, borrowers will no longer have to pay the interests of loans [COVID-19 Viyafaari Ehee] issued by SDFC,” he said.

MVR 373 million has been issued to 2,146 SMEs under the scheme. In an earlier easement to repayment of the loan, the grace period ahead of repayment was extended.