COVID19- Maldives Resorts to Get $500k Loans

Wednesday 8th of April 2020

COVID19- Maldives Resorts to Get $500k Loans

Resorts in the Maldives that were hit hard by the coronavirus pandemic will be able to apply for emergency financing up to MVR 7.71 million ($500,733), authorities has announced. The applications open on 8th April, Wednesday.

On 7th April, Finance Ministry stated that the emergency loans for resorts as well as local businesses with a turnover of over MVR 10 million in 2019 will be arranged through Bank of Maldives (BML). Further, BML announced that loans up to MVR 7.71 million be arranged to resorts that were profitable in the previous year, have no non-performing facilities at any financial institution, and have a positive cash flow forecast for three years.

For businesses that are not in the tourism industry, but with a turnover of over MVR 10 million in 2019, the bank will provide loans up to MVR 1 million ($64,946). Those businesses are also required to demonstrate profitability in 2019 and good credit history. The unsecured loans have a six-month grace period and a repayment period of three years. Interest will be charged at six per cent per annum, but no interest will be charged during the grace period.