The Bank of Maldives has announced additional relief financing for Small and Medium Enterprises (SMEs) amid the ongoing Covid-19 pandemic.
The country’s national bank announced the additional relief support for SMEs through funding from the European Investment Bank (EIB).
This was done with an aim to help sustain SMEs in the tourism and industry sectors in the country, and to speed up post-covid economic recovery.
Benefitting from a Comprehensive Guarantee from the European Union, the loan is provided from resources of the External Lending Mandate (ELM).
The new relief support announced on Wednesday is available to SMEs with fewer than 3,000 employees and businesses may finance projects up to MVR 15.42 million at a preferential or lower interest rate and longer maturity.
The funding from EIB provides access to finance for the many businesses in the tourism and related industries requiring additional support for their post-COVID recovery efforts. The new loan introduced today will pave the way for businesses and in turn, the economy recover faster from the impacts of the pandemic”Tim Sawyer, CEO and Managing Director of BML.
Details of the application process will be publicized on the bank's website.
The European Investment Bank (EIB) has signed a loan worth EUR 20 million with the Maldivian government on June 16.
The loan was granted as part of the Team Europe Action to assist in the post-Covid-19 recovery efforts of the country's economy, protect jobs and support Small and Medium Enterprises (SMEs) operating in the travel and tourism industry sectors.
It is also expected to improve access to finance and reinforce the local banking sector and enable the island nation to recover faster from the economic impacts of the global pandemic.
The funds will be available to local SMEs at the Bank of Maldives and this loan is expected to be crucial for the stabilization of the local economy, with tourism contributing about 40 percent of the national GDP.
EIB revealed that this is the first Covid-19 related operation of the bank in Asia and a part of the 5.2-billion-euro support package for countries outside of the EU, on April 8.
However, this is the third operation for the EIB in Maldives since establishment in the island nation, during 2005.
Receiving the funds, the Minister of Finance Ibrahim Ameer noted that the government of Maldives fully appreciates the swift support provided by EIB during this time of crisis.
EIB has thus far invested 115 million euros in the Maldives in three operations supporting the local energy and SME sectors.
