Bank of Maldives (BML) on Sunday, 29 March 2020 has announced the bank will not compound interest on personal, housing and business loans during the moratorium period.
Earlier, the Maldives national bank announced its decision to declare a moratorium for six months on the aforementioned loans in light of the COVID-19 viral pandemic that had placed dents on the country's overall economic growth.
In their latest press statement BML stated that it has been "working hard with international accountancy bodies, Government and its regulators to ensure that its support to the Maldivian economy is what is needed ensuring the compliance with international standards."
According to BML, the interest charged during the moratorium period, will be added to the outstanding loan amount and spread over the remaining period of the loan.
In addition to this, the bank has also decided to relax the eligibility criteria and in order to apply customers should not have more than 1-month loan installment overdue.
BML further noted other customers "may bring their accounts up date, as outlined before, and will then be eligible at any time during the moratorium period."
Customers will be sent individual details on the moratorium and the application process starting from 30 March 2020.
Moreover, BML Islamic customers with personal, housing and business financing as stated above will remain applicable for the moratorium with the exception of customers with Murabaha financing.
Customers with Murabaha financing can expect the bank to contact them separately on how to proceed.
The national bank of Maldives announced its moratorium in a bid to ease the debtors during the financially constrained period as the economic drive have significantly slowed amid the viral pandemic's spread.
