Parliament Speaker, Mohamed Nasheed, has stated that pending court cases involving inactive bank accounts are an obstacle to obtain housing.
While speaking at the opening ceremony for Glamour Residence by Glut Investments Private Limited, Nasheed stated housing should be developed like a business and mortgages or loans should be established to do so.
He noted that such a loan should have a longer repayment period and require mortgaging the apartment.
He remarked that there are two main reasons banks don't give large loans. Those reasons being the high risk involved for banks and low chance of those loans being repaid.
“The current legal system is an obstacle to this business. There are many pending cases in court related to housing loans. Therefore, banks are reluctant to give out mortgages.”Mohamed Nasheed
He further added that a proper real-estate legisalaure needs to be enacted and that the current legal system needs to become more efficient.
Nasheed stated that the country’s economy will not grow by government intervention alone, but requires participation from private businesses, especially from the fishing and tourism sector.
According to Nasheed, participation from private businesses can be seen heavily in the private sector but is lacking in the public sector.
He highlighted that the government has heavily invested in the PSIP program and that there is a very low level of participation from small and medium-sized businesses. He also noted that government projects are run using loans from international financial institutions.
