Economic Relief Package to Grant Each Resort MVR 7.7 Million as Loan

Ministry of Finance has announced that each resort will be given MVR 7.7 million loan as per the economic relief package introduced by the government to mitigate the economic downfall with regard to COVID-19 pandemic.

The government has implemented 7 key stimulus packages to combat the economic impact of COVID-19 crisis.

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This includes:

• Loans as working capital to help the businesses and resorts.
• Exemption of 40% from the electricity bill for months April and May.
• Exemption of 30% from the water bill for months April and May.
• Moratorium of loan repayments from Bank of Maldives (BML) and Housing Development Finance Corporation that allows deferment of monthly repayments for 6 months.
• Moratorium of loan repayments from SME Development Finance Corporation that allows deferment of monthly repayments for 6 months from March 2020 along with 4% decrease in interest rates within this period.
• Moratorium of student loan repayments for the National Student Loan Scheme and Educational Assistance that allows deferment of monthly repayments for 6 months from March 2020.
• 3 months allowance to those who loose their jobs due to COVID-19 crisis.

Among this, the loans set to give as working capital to help businesses will be given through Bank of Maldives and SME Development Finance Corporation.

Finance Ministry has revealed that this loan will have a 6% interest rate with a grace period of 6 months. Also, businesses do not need to pay back the interest and principal amount in this period. Businesses can repay the loan in installments within a period of 3 years.

Resorts will be given loan through Bank of Maldives and each resort will can take maximum MVR 7.71 million.

The Ministry stated that this will be given by checking the percentage of local shares in the ownership and that priority will be given to those resorts who maintain 45% local employees or higher.

Furthermore, the government will take into consideration; the resort or company’s availability of non-performing assets, 2019 profits, and 3 years cash flow projection (if it is positive).

However, those companies or resorts that have taken any action against the employees due to the pandemic will not be eligible for this loan.

The government has opened applications for loans under the relief plan from 8th March onwards.