BML denies issuing loans in breach of banking rules

Bank of Maldives (BML) has rejected claims that it is issuing loans in violation of the Banking Act.

In a post on X, BML spokesperson Mohamed Saeed dismissed as “baseless” allegations that the bank has been providing loans or financing to contractors involved in government-awarded projects in a manner that breaches banking regulations. The claims, he said, were “not based on valid information”.

Saeed said BML issues loans strictly in line with its credit policies, Maldivian banking laws and regulations, and international standards. All lending decisions, he added, are made independently and approved by the bank’s board.

“It is irresponsible to spread misleading and untrue information to the bank’s customers and shareholders to achieve a political goal,” he said.

His comments follow criticism from the opposition Maldivian Democratic Party (MDP), which issued a statement claiming BML had facilitated financing for 206 projects awarded to 53 companies “without bidding, transparency or competition”.

In June, the government awarded MVR 2.7 billion worth of projects to private contractors at a ceremony in Male'.

The projects span 123 islands and include housing schemes, land reclamation, education and health facilities, sports infrastructure and the construction of Waqf buildings.

Finance minister Moosa Zameer said at the time that contractors would be funded through the banking system.

“Maldivian businesses will receive equal access to funds through banking finance in accordance with the contractor financing rules,” he said.