Bank of Maldives (BML) on Sunday clarified that the bank will not be compounding interest during the six-month moratorium period for deferred loans, and therefore, will not be charging interest on interest.
However, interest will still be charged during these six months and added to the remaining amount of the loan, spread over the total period of loan repayment.
In addition, the bank relaxed the eligibility criteria, allowing customers who have a one-month loan installment overdue, to apply for the moratorium.
Other customers can apply to defer their loans at any time during the moratorium period, before the end of September, after bringing their accounts up to date.
According to the bank, BML will send individual details on the moratorium and the application process starting March 30, 2020.
Since the aforementioned procedure is applicable to all BML Islamic costumers except for those with Murabaha financing, the bank stated that those customers will contacted separately.
As the country's economy is being severely affected by the loss of revenue in the tourism sector, President Solih noted that the government will help those in need through loan schemes and moratoriums.
Experts estimate that the global economy may continue to take even more hits as COVID-19 continues to spread at an alarming rate around the globe.
The World Health Organization has classified the spread of COVID-19 as a global pandemic. The novel coronavirus has infected more than 440,326 and claimed over 19,752 lives around the world. However, out of those infected, more than 112,028 have recovered.
Maldives now records 17 confirmed and six active cases of COVID-19, with a total of 11 recoveries. While there are two confirmed cases of Maldivians, no local to local transmissions are recorded.
Currently, 20 people are placed in isolation facilities, while 824 are in quarantine facilities. As a preventative measure, HPA has ordered authorities to halt on-arrival visas from March 27 onwards. Furthermore, all inbound locals or visa holders will be placed under observation at a designated facility for a period of 14 days.