Stimulus Package Details- Ministry of Finance

Wednesday 8th of April 2020

Stimulus Package Details- Ministry of Finance

President Ibrahim Mohamed Solih had announced a MVR2.5 billion worth stimulus package under the Economic Recovery Plan amidst the coronavirus pandemic that’s having a significant impact on the Maldivian economy. Details of this have been given by the Minister of Finance Mr. Ibrahim Ameer.

1. Capital loan and loans for entrepreneurs

6% interest with 6 months grace period (during which interest does not have to be paid) and repayment period of 3 years. Applications for these loans will open on 8th April by Bank of Maldives and SME Development Finance Corporation.

Capital loans to resorts will be offered by Bank of Maldives, with financing up to MVR 7.71 million. The loans will be given 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.

Further, local businesses with a turnover of over MVR 10 million in 2019 can apply for finance up to MVR 1 million by Bank of Maldives, while business with less than 10 million turnover in 2019 can receive capital financing from SME Development Finance Corporation.

2. Partial subsidization on utility bills for a 2-month period

40% Electricity bill will be subsidized and 30% of water bill for the months of April and May.

3. 6-month moratorium by Bank of Maldives on principal and interest payment of housing, business and personal loans, 6-month moratorium on principal and interest payments of loans issued from SME Development Finance Corporation (SDFC) – inclusive of the reduction of loan interest rate by 4% and 6-month postponement on the repayment period of loans granted under National Student Loan Scheme.

4. Allowance for individuals losing their employment due to COVID19

For three months starting April, those who were made redundant as a result of coronavirus pandemic will receive an allowance at the end of the month.