President Ibrahim Mohamed Solih stated on Monday that the Small and Medium Enterprise (SME) loans will target two-thirds of the population, and a portion of the loan is specially allocated towards women, youth and differently-abled persons.
Speaking at the inaugural ceremony of SME Development Finance Corporation, President Solih highlighted that, by establishing a bank to provide financial aid, not only does it empower locals, but the amount of profit entering the pockets of ordinary citizens is increased. Moreover, he noted that enrichment of the public will serve to strengthen the country's economy.
Stating that SME's are the backbone of the economy, President Solih emphasised that as much as 93 percent of the Maldivian business scene consists of SMEs.
In addition, President Solih recognized that the majority of job opportunities are provided by these SMEs, despite major businesses raking millions in revenue.
“Today, there are many youths wishing to build their own lives, stuck at a junction, without any destination. There are many energetic women lacking means to convert their skills into an activity that generates income. There are many people with disabilities who want to work and earn pay”, the President said.
President Solih expressed his confidence that the establishment of services from the SME Bank, would lead to the formation of several new young entrepreneurs, adding that creations of Maldivian women would likely revolutionize the economy. The President also stated that this bank will provide financial aid for those who wish to work from home.
Discussing matters related to the economic hierarchy in Maldives, the President noted that the system was set up in a way that benefited big businesses, and that owing to this fact, SMEs had faced various difficulties in acquiring loans and financial aid in previous times.
President Solih stated that with the establishment of the bank, SMEs were set to increase and flourish.
Per the President, SME loans will be granted for four main sectors. They are island business loans, business aid loans, agriculture loans and tangible wealth loan.
All loans, barring the financial aid scheme, will carry an interest between 6 to 9 percent. Applicants will be subject to a period between 2 to 7 years for repayment of the loan.
President Solih further guaranteed that similar loans will be granted in the future, with even lower interest rates.
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