The Government of Maldives has announced two additional stimulus packages under its Covid-19 Recovery Economic Stimulus Scheme designed to boost the recovery of Small and Medium Enterprises that are affected by the pandemic.
Covid-19 Economic Stimulus Loan
The Covis19 Economic Stimulus loan is Euro 20 million net worth facility that will be managed by the Bank of Maldives and Ministry of Finance. Businesses are eligible for up to MVR 10 million in a single application without any additional security. If eligible, more than one application can be submitted by an individual business at any given time. This first-of-its-kind loan comes with an interest rate as low as 6% and can be repaid within 4 years’ time. A grace period of 12 months will be provided, with an overdraft of 2 years.
Eligibility Criteria
Projects eligible for finance under the loan
Minister of Finance, Ibrahim Ameer commented on the Covid-19 Economic Stimulus Loan will be an accelerated means to return to the pre-covid economy as soon as possible. The loans are a first-of-its-kind in the Maldives, that offer an optimum grace period, easy repayment means and at the lowest interest rates. He forecasted that an 18% growth will be witnessed in our economy in the upcoming year.
Covid-19 Sustainable Stimulus Loan
Offering up to MVR 1 million in loan funding, the Covid-19 Sustainable Stimulus Loan is available without any security. The loan can be repaid within 5 – 8 years at an interest rate of 6%. There is a 12 – 24 month grace period attached to this loan as well.
Packages of the Covid-19 Sustainable Stimulus Loan
Eligibility Criteria
Speaking on the Covid-19 Sustainable Stimulus Loan, Minister of Economic Development, Fayyaz Ismail said that priority will be given to the worst-affected sectors and areas in disbursing the loans. Moreover, SDFC will provide assistance from business consultants to those who request a plan for revival of the business. Majority of the funds available from SME bank will be dedicated to boost existing businesses as part of the economic reconstruction post the pandemic.
The loan schemes are part of President Ibrahim Mohamed Solih’s National Resilience and Recovery Plan. Until now, a total of MVR 1.1 billion have been disbursed via SDFC and BML as loan aid to businesses. The new loan schemes will be available for application within the first week of July.