SME Development Finance Corporation (SDFC) confirmed its decision to cut interest rates to 4 percent for loans issued to Small and Medium Enterprises and delay the repayment period by six months.
SDFC stated that both measures were intended to combat economic repercussions of the COVID-19 pandemic on small businesses operating in Maldives.
Economic Minister Fayyaz Ismail recently revealed that efforts were underway to secure lower interest rates and more lenient repayment policies for loans.
President Ibrahim Mohamed Solih recently revealed that the government were to lose between USD 135.9 million (MVR 2.5 billion) and USD 446.6 million (MVR 6.9 billion) in state revenue this year under current circumstances amidst the COVID-19 outbreak in the country.
In order to counteract the estimated losses, the cabinet of ministers decided to cut MVR 1 billion in state costs and close government offices from March 19 to 26. Meanwhile, the parliament approved a 20 percent cut of parliamentarian's salaries on Wednesday.
Currently there are 13 confirmed cases of COVID-19 in Maldives, including a tourist couple on a liveaboard, two cases from Anantara Dhigu, five foreign nationals from Kuredu Island Resort as well as two foreign citizens from Sandies Bathala and Kuramathi Maldives each. No locals have tested positive for the virus as of yet.
The World Health Organization has classified the spread of COVID-19 as a global pandemic. The novel coronavirus has infected more than 219,000 and claimed over 8,960 lives around the world. However, out of those infected, more than 85,670 have recovered.
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