Minister fails to provide operationalization date for Development Bank

Economic Minister Mohamed Saeed, citing preparations related to the Development Bank of Maldives (DBM) are progressing as scheduled, states the bank will be operationalized “very soon”.

Responding to a question from South Galolhu MP Meekail Ahmed Naseem during Tuesday’s parliamentary sitting, Minister Saeed explained that DBM is not intended to offer typical banking services like opening accounts or management of funds. Instead, he explained, the bank’s primary role is to secure funding for development initiatives, positioning it as a key institution in driving forward development projects.

“By the will of Almighty, [the work] is proceeding as we expected, at a fast pace,” he said, stressing DBM would be operationalized “very soon”.

However, Minister Saeed failed to provide a specific date for the operationalization of the bank.

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 set up businesses and activities as well.

The establishment of a development bank in Maldives was 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, 2024. The Economic Ministry applied with the central bank, Maldives Monetary Authority (MMA) for a license to operate DBM on July 28, 2024, and the license was granted two months later on October 13, 2024. The DBM was inaugurated on November 16, 2024, but has yet to be operationalized.

The delay in the operationalization of the DBM was sparked public concern.

According to Finance Ministry, a total of MVR 6,566, 338.20 has been spent on the bank from its inception to March 25.

The Ministry did not provide any details regarding the expenses.

Noel Gregor Paterson-Jones, who was appointed as the CEO and Managing Director of the DBM on August 26, 2024, tendered his resignation on March 20. He lodged a case with the Employment Tribunal on April 7, seeking his alleged remuneration for the notice period of his resignation.

Shortly after Paterson-Jones’ exit from DBM, another board director, Ahmed Ali, tendered his resignation on March 23.