The Maldives’ central bank has doubled the funds allocated for its Credit Guarantee scheme, established under the Small and Medium Enterprises Act, from MVR 50 million to MVR 100 million in the wake of overwhelming support over a short period of time.
Maldives Monetary Authority (MMA) revealed that it received applications for loans totalling MVR 44.6 million under the scheme by the end of last December. The central bank had issued credit guarantees for six of the applicants.
MMA disclosed that loan applications totalling MVR 39 million are already in the processing stage. Banks participating the scheme are processing loan applications of MVR 30 million while MMA’s Credit Guarantee unit is processing loan applications of MVR 9 million.
The Credit Guarantee scheme was launched last August 7 with the objective of providing financial services at economical rates to small and medium businesses and increase their debt repayments.
The scheme is designed to aid such businesses in overcoming the challenges faced in acquiring loans, including loans without mortgages. All the banks in the Maldives san two are participating in the scheme.
According to MMA, the scheme provides credit guarantees to loans issued by banks to feasible small and medium enterprises’ business ventures that meets the scheme’s conditions. The guarantees are granted for loans between MVR 100,000 to MVR 1 million.
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