The Bank of Maldives (BML) has denied allegations that it plans to issue loans to private companies for the recently distributed 206 projects without the approval of the board.
The government claims the projects are contractor-financed. But sources told Adhadhu that the private companies signed the project agreements after the government assured them that loans would be arranged under special rules.
But in a lengthy statement, the national bank said its board and management were acting with full prudence and independence, while adhering to the strictest international standards.
"The bank's structures are in line with the country's banking laws and regulations, prudential regulations and standards set by the MMA [Maldives Monetary Authority] as well as strong international standards such as Basel III and IFRS 9," BML said.
BML said international audit firms regularly audit the bank to ensure its standards.
The bank insisted that its loans are disbursed in accordance with the bank’s credit policies and the rules and regulations set by the MMA. The loan repayment capacity, single borrower exposure and group borrower exposure will be considered.
BML said the same rule will apply to the 53 private companies that were awarded government projects without an open bidding process.
"If the companies that received the government projects are the bank's customers, they will also have the opportunity to apply for loans under the existing procedures," the bank stated.
In addition, BML noted that the bank's board has set the criteria for issuing loans. These include the extent to which the bank can invest directly in government affairs, extend loans to various entities under government guarantees, extend loans to private individuals based on government receivables and extend loans to government-owned companies.
BML also shared details of its loan portfolio to confirm that the loans have been disbursed in accordance with the standards set by the bank's board. BML said the figures show that the bank is issuing loans within its risk threshold.
The bank's total loan portfolio stood at MVR 23.7 billion at the end of the third quarter of this year. Loans worth MVR 6.5 billion were disbursed this year. The total amounts of loans disbursed by the bank in various sectors till September 2025 are:
- Tourism – MVR 8.71 billion
- Private individuals – MVR 5.34 billion
- Construction and housing – MVR 5.09 billion
- Transport and Communications – MVR 2.40 billion
- For businesses – MVR 1.04 billion
- Other Sectors – MVR 1.11 billion
The bank concluded its statement by urging the public not to spread misleading information about the bank. The bank also asked not to share such information, "without getting the accurate information to achieve a specific purpose."
