BML issues MVR 532m in loans under Covid-19 recovery scheme

Bank of Maldives has issued MVR 532 million in loads under the government’s Covid-19 recovery loan scheme.

According to the latest statistics publicized by the Ministry of Finance on Thursday, the funds were disbursed to 377 applicants, totaling USD 7.5 million.

As such, BML had received a total of 573 applications out of which 470 had been approved and 16, rejected.

Further, 12 applications are currently processing while 135 applications are incomplete and thus, not eligible for the recovery loan scheme.

As part of the efforts to assist large-scale businesses and tourist resorts, the national bank has issued MVR 530 million thus far.

Statistics also reveal that the bank received 554 applications for the loans disbursed to tourist resorts and local guesthouses facing major struggles due to the impacts of the pandemic, with over MVR 10 million in turnover for 2019.

The recovery loan scheme allows resorts and businesses registered in the island nation with over MVR 10 million turnover during 2019, to apply for financing if they have been affected by the pandemic.

For eligible businesses, this is an unsecured facility provided at 6 percent interest per annum for a three-year period, including a maximum six-month grace period in which no interest and principal payments will be made, said BML.

The bank added that loans will only be issued provided that they have not laid off local employees due to the pandemic, when applying.