Development Bank set to receive license this week

The central bank is set to issue an operating license to the Development Bank of Maldives (DBM) within this week.

The establishment of a development bank in Maldives is one of President Dr. Mohamed Muizzu’s electoral pledges. He used the powers vested in him under the Companies Act to form the Development Bank of Maldives Limited on May 16. The Economic Ministry applied with the central bank, Maldives Monetary Authority (MMA) for a license to operate DBM on July 28.

In an episode of SSTV’s ‘Editaruge Suvaalu’ show, MMA’s Deputy Governor Ahmed Imad said that some of the paperwork had been missing in the application, and the central bank did not get the full paperwork until September 16.

Imad said that the purpose of the DBM was listed as running infrastructure development projects and boosting private sector investments, especially in the resort sector.

“If we are able to achieve these goals and the development bank is run in accordance with the plan, there are certain benefits for the Maldives,” he said.

Imad said that the central bank has finished evaluating the proposal and has decided to issue license.

“The board has already made the decision. We will issue the license to the government, the bank applicant, within this week,” he said.

President Muizzu has previously said that the biggest purpose of the DBM is to diversify and expand the Maldivian economy.

He said that once the DBM begins operations, it will become a hub for investment in economic sectors including tourism, real estate, housing, renewable energy, and more.

Development banks are financial institutions with the focus of introducing new businesses, industrial activities, and other economic initiatives in countries.

The banks are primary lenders for new ventures with loan facilities to setup businesses and activities as well.

President Muizzu made key appointments to the DBM in August. Aruni Goonetilleke, a Singaporean, was appointed as the Chairperson and Noel Gregor Paterson-Jones, a British national, was appointed as the CEO.

Other members appointed to the DBM’s board includes:

• Ahmed Ali, a Maldivian;
• Saeed Abdul Nasir Bin Saeed Hassan Al-Junaid, a Singaporean; and
• Robert Daniel Kant, a Briton.

According to the President’s Office, the institution was formed in alignment with the government’s policies, including the funding of infrastructure projects, investing in sustainable economic and social development, addressing the difficulties associated with financing PSIP projects through syndicated financing, and fostering a greater interest in maintaining foreign exchange within the nation's banking system.