Maldives Islamic Bank to auction house over unpaid loan

Maldives Islamic Bank (MIB) has announced that it will sell a house in Male' at auction after the owner failed to repay a construction finance facility.

The mortgaged property was tied to a MVR 2.6 million loan taken under MIB’s Construction Financing Facility. According to the bank, repayment was not made within the stipulated period, prompting the bank to seek the sale following a Civil Court judgment issued in November last year.

The auction will begin with a starting price of MVR 12.6 million. Bidding will be open from today until 26 January, with bids set to be opened on the third floor of MIB’s head office at 1 pm on the final day.

All letters of intent submitted by bidders will be opened in the presence of attendees.

The bank said the highest bid submitted will serve as the starting price for the auction, but bidders will have the opportunity to offer higher amounts.

Both previous and new bidders may participate, with any higher bid required to be at least MVR 500,000 above the prior offer. If no higher bids are made, the auction will close at that point.

The successful bidder must pay the bid amount within the period specified by the bank; failure to do so will result in the offer being rejected, with the property offered to the next highest bidder.

Participation in the auction requires a bid security of MVR 100,000.