The Bank of Maldives (BML) has categorically denied allegations circulating about the disbursement of funds to contractors involved in government projects with private companies, claiming these were carried out without Board approval or in violation of the Bank’s loan policies.
BML emphasized that its Board and Management operate with full prudence and independence, guided by stringent corporate governance standards and international best practices. The Bank maintains frameworks aligned with Maldivian banking laws, regulations issued by the Maldives Monetary Authority (MMA), and global standards, including Basel III and IFRS 9. Regular audits conducted by international firms consistently confirm the Bank’s operational soundness.
The Bank stated that all loan disbursements strictly follow Board-approved strategies and policies. Each application undergoes careful evaluation, including repayment capacity, single and group borrower exposures, and adherence to proper underwriting principles. Loans are granted only after thorough assessment of the applicant’s ability to repay, ensuring compliance with both internal credit policies and MMA regulations.
BML further clarified that companies engaged in government projects, if existing Bank customers, may apply for loans under standard procedures. All applications are evaluated on commercial terms in line with established credit criteria.
Additionally, the Bank’s Board has set lending limits for different sectors, encompassing direct investments in government initiatives, loans backed by government guarantees, loans to private parties based on government receivables, and financing for government-owned entities.
BML reaffirmed that its operations remain transparent, governed by internationally recognized standards, and committed to prudent, responsible lending practices.
