The SME Development and Finance Corporation (SDFC) has introduced a loan deferment.

SDFC revealed that the decision was reached in order to help out small and medium enterprises (SMEs) in light of the ever-evolving global Covid-19 crisis.

In a Twitter post, Minister of Economic Development, Fayyaz Ismail expressed gratitude to SDFC for the decision to extend the moratorium on all loans until the end of 2020, for all those who wish to do so.

He went on to express hope that larger banks will “follow suit in this unprecedented situation and bring heart to banking”, during this unprecedented time.

Earlier, SDFC deferred loan repayments for six months starting from March and the interest rate for the six months was also reduced to four percent.

Since its inception during March 2019, SDFC has been providing financial assistance to small and medium-sized enterprises.

The government had allocated a total of MVR 450 million for SDFC under the State Budget for the ongoing year, in order to assist SMEs.

Alongside the country’s national bank, Bank of Maldives, SDFC has also been providing loans to businesses as relief payments in light of the Covid-19 crisis. Almost MVR 222.9 million has been provided to businesses thus far.