The Maldives Development Bank will be established in July, Economic Minister Mohamed Saeed said yesterday.
Development banks provide financing and assistance for economic development projects, especially infrastructure development projects, on a long-term repayment basis. Establishing such a bank in the Maldives is a key objective of the current government.
Such banks usually provide loans, grants and expert assistance to government agencies, private businesses and civil society associations active in sectors such as infrastructure, agriculture, education, healthcare and renewable energy.
Providing an update on the development bank during a ceremony held yesterday to sign an MoU for special economic zones in Ihavandhippolhu and Funadhoo, Saeed said efforts to set up the bank are progressing rapidly under the supervision of the Maldives Financial Services Authority created by President Dr. Mohamed Muizzu.
"[The development bank] is a project that would significantly change the history of the Maldives, God willing. When we make additional private placements of the government, investors who would invest in this bank have even now made indications and they have been providing full assurances to us about their acceptance or participation with confidence," he said.
"Therefore, this is also progress that we're making. We're expecting the bank's operations to begin in July."
The government says a development bank needs to be introduced to the banking system due to the lack of space in the current system to ensure the development needed by the public. Once it is established, the bank will facilitate much easier options for securing loans and financing for development projects, the government said.
