The Maldives Development Bank (DBM) has failed to begin operations within the time period stipulated by the central bank.
The Maldives Monetary Authority (MMA) issued the license on October 13, 2024, on condition that banking services be provided within a year.
The DBM was inaugurated on November 16, 2024, to mark the one-year anniversary of President Mohamed Muizzu's government. But the bank has not provided any services or issued any loans.
As of March 25 this year, the government had spent MVR 6.5 million on the bank. The Finance Ministry did not provide details on how the money was spent, but specified the categories of costs.
- Branding
- License Fee
- Cost of opening the bank
- Expenditure on the office building
- Expenses incurred as rent
- Expenditure on salaries
- Transportation expenses
- Cost of consultancy and professional services
But the State Trading Organization (STO) confirmed that DBM had not paid rent for the office building till May this year. The monthly rent is MVR 75,892.
The government says the bank will facilitate the provision of loans and funds for development.
However, no services have been started to date. The bank’s CEO, Noel Gregor Paterson-Jones, resigned on March 23, before the facility began operating, due to unpaid salaries.
