Minister says DBM was inaugurated in November without plans to begin service immediately

Jan 19, 2025, 1:01 PM
Economic Minister Mohamed Saeed. -- File Photo: President's Office

Economic Minister Mohamed Saeed. -- File Photo: President's Office

Economic Minister Mohamed Saeed has said that the Maldives Development Bank (DBM) was inaugurated on November 16, to mark the one-year anniversary of President Dr. Mohamed Muizzu's government, without plans to begin service immediately.

In a post on X, Saeed said DBM would be formed in three phases and that the first phase of institutional setup was progressing on schedule.

"The DBM’s business model prioritizes institutional investors and large-scale infrastructure projects, with plans to introduce retail services at a later phase. This phased approach is aligned with broader efforts to stabilize and strengthen the economy," he wrote.

Despite Saeed's statement, the DBM was inaugurated on November 16 as one of the biggest achievements of Muizzu's first year in office.

At the time of inauguration, the government said the bank would facilitate the provision of loans and funds for development but did not say whether the services would be launched under a phased plan.

While Saeed said DBM's administrative structure is currently being formulated, banks or similar service providers are usually opened after the administrative structure is formulated and with the provision of some services.

Maldives Monetary Authority (MMA) issued the license to operate DBM on October 13. The license was issued on condition that banking services be provided within a year.

Saeed also said in his post that the current administration was "overcoming the mess inherited from an irresponsible government which lacked complete discipline in managing public finance."

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