MMA affirms regulatory compliance in SDFC share purchase

The central bank of Maldives, MMA, has assured that BML’s planned acquisition of government shares in the SME Development Finance Corporation (SDFC) is being carried out in full compliance with applicable laws, regulations, and procedures.

Maldives Monetary Authority (MMA) made the statement in response to allegations suggesting that BML’s proposed transaction may violate the Banking Act of Maldives.

"Based on the information provided to the Maldives Monetary Authority regarding the Bank of Maldives’ intention to acquire shares in SDFC, the Authority has reviewed the matter to ensure compliance with relevant regulatory frameworks,” the MMA said in a statement.

“BML has assured the Authority that the transaction will proceed in line with all legal and procedural requirements.”

BML also confirmed that the transaction will only be completed once all regulatory processes under the Banking Act and related regulations are fulfilled.

The bank stated that it has already begun working through these phases.

BML has offered to purchase the government’s stake in SDFC, a specialized institution established to provide financial support to small and medium enterprises (SMEs). The Cabinet approved the sale earlier this week, citing the need to bolster SDFC’s financial capacity and ensure continued access to financing for small businesses.

According to a statement from the President’s Office, following the acquisition, BML has committed to disbursing MVR 500 million in SME loans within the first year, and a total of MVR 1.9 billion over five years. An additional MVR 300 million will be earmarked over three years to support start-up businesses.