President Dr Mohamed Muizzu has decided to cancel interest on loans issued through Housing Development Finance Corporation (HDFC) and SME Development Finance Corporation (SDFC) during the COVID-19 pandemic.
President Dr Mohamed Muizzu has decided to cancel interest on loans issued through Housing Development Finance Corporation (HDFC) and SME Development Finance Corporation (SDFC) during the COVID-19 pandemic.
Many loans were disbursed through SDFC specifically for small and medium enterprises to boost Maldives' economy past the downturn caused by COVID-19.
Speaking to citizens of Laamu atoll Fonadhoo on Thursday night, President Dr Muizzu stated that there were many people who had not been able to pay off their loans taken during pandemic times with SDFC, and that the government had decided to cancel interest on those loans to relieve the public of that burden.
The President revealed that borrowers of these loans would be able to submit their applications to move forward with SDFC after the Eid holidays. He also announced that interest on housing loans taken through HDFC would also be waived as many people are struggling to pay off the bloated interest values.
"We will open applications for this on the first working day after the Eid holidays. This is for the interest of all who took the loan. They will be able to apply, sign an agreement and have the interest waived on their loans."
"There had been a moratorium issued for payments with the housing loans, but interest rates have kept rising to unmanageable levels."
President Dr Muizzu added that former president Ibrahim Mohamed Solih's government had ended just as talks were underway on waiving interest on these loans. However, the president said that his government would show results proactively, and will not wait until elections are near to get things done.
On his campaign trail for the second round of the presidential election in September last year, former president Solih had announced that interest on loans issued by the SDFC to small businesses would be cut altogether and refunded to those who had already paid the interest. Former president Solih lost the presidency before any tangible progress could be made in waiving interest on COVID-related loans.
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