Maldives Minister of Finance Mr Ibrahim Ameer disclosed details of the stimulus package by government as part of the Economic Recovery Plan.
The government of Maldives earlier announced a MVR2.5 billion economic stimulus package in a bid to offset or reduce the economical loss or damage on businesses and individuals.
State has taken several steps in order to challenge the economical drawback faced in light of the rapidly spreading COVID-19 pandemic; which has drastically stalled all economic activities of the country.
Key decisions of Maldives government, either pushed or endorsed include;
- Loan issuance as working capital for local businesses and entrepreneurs
- Partial subsidization by government on utility bills for a 2-month period
- 6-month moratorium by Bank of Maldives on principal and interest payment of housing, business and personal financing loans
- 6-month moratorium on principal and interest payments of loans issued from SME Development Finance Corporation (SDFC) with a reduction of 4% on loan interest
- 6-month postponement on repayment period for loans granted under National Student Loan Scheme
Maldives government will be providing an allowance for individuals becoming victim of corporate redundancies, terminations or lay-offs during the current period.
State announced providing an allowance for such individuals for a 3-month period from April 2020.
Working capital loans for businesses and financial assistance for enterpreneurs will be provided through specifically enacted facilities at Bank of Maldives and SME Development Finance Corporation (SDFC).
Loans will be issued at 6% interest rate, with 6 months of grace period and without additional charge on principal or interest during the period with a 3-year repayment period.
Maldives government will be providing funding for local resorts under the recovery plan, with each property subjected to a maximum of MVR7.71 million in funding.
Resort properties will be assessed on the local ownership and local employee percentiles. Priorities will be given to properties with a local employment at 45% or above.
Additionally, assessment will be made on the non-performing assets, profit ratio of businesses in the fiscal year of 2019 as well as on a prospective forecast of cash-flow of the business for the next 3 year period.
Moreover, businesses will be assessed on their conduct towards employees - with regards to redundancies or lay-offs.
