The Maldives Minister of Finance Mr Abdulla Ameer on Sunday confirmed the national bank of the island nation will not be compounding interest on loans during moratorium period.
According to Mr Ameer BML's decision for a moratorium comes as the bank's decision to support Maldives government's Economic Recovery Plan to ensure the dent on individuals and businesses is not significantly adverse at times of grave financial constraint.
However, BML in their statement also added the interest charged during the moratorium period, will be added to the outstanding loan amount and spread over the remaining period of the loan.
Following this, Minister of Finance had tweeted to remedy public concern regarding the possibility of compounding interest during the period. Minister Ameer confirmed the bank has decided not to compound interest during the moratorium period of 6 months.
Moreover, the Maldives Minister of Finance ensured the national bank of the island nation was currently working hard alongside international accountancy bodies as well as the country's government to ensure compliance with international standards.
Minister Ameer assured the government as well as financial institutions of Maldives were working tirelessly to reduce any significant duress on the public and businesses amid the COVID-19 viral outbreak, which has dented the local economy drastically.
