Maldives Monetary Authority (MMA) reported that the amount of loans issued by banks increased by 13 percent in the first quarter of this year.
According to the central bank's quarterly bulletin, the loans issued by the banking system to private entities showed significant increase, particularly in the sectors of tourism, construction and real estate.
MMA's statistics show that banks issued loans amounting to total MVR 21.5 billion by the end of the first quarter. Nine percent of the loans were issued for the development of new resorts and guesthouses, while housing loans show an increase of 27 percent.
The economy of the Maldives also spiked from five percent in the final quarter of 2017, to eight percent in the first quarter this year. MMA attributed this spike to an increase in demand deposit of the banking system.
Banks also recorded a profit of MVR 600 million in the first quarter, which is a seven percent drop from last year.