The three existing city councils in the Maldives will each have a 15 percent stake in the new SME Bank, Economic Minister Fayyaz Ismail has said.

Minister Fayyaz said while speaking to RaajjeTV on Wednesday night that cities, being highly populated regions, are where most business is done and that councils must be allowed to facilitate this.

Fayyaz said that while 15 percent may seem small, it will greatly empower city councils and decentralization of the national economy.

In this regard, Minister Fayyaz said that Maldivian decentralization laws require great review and that the government will work towards this once the People’s Majlis reconvenes.

Fayyaz also said that the previous government had completely undermined the concept and centralized all powers. Much of the authority seized by President Abdulla Yameen’s administration has been returned to the councils.

The only cities in the Maldives are capital city Malé, southern Fuvahmulah, and the southernmost Addu city.

Establishing an SME Bank, which will facilitate small and medium-sized enterprises, is a pledge in the new government first 100-day agenda.