The Bank of Maldives (BML) has defended its loans to 53 private companies to finance MVR 2.7 billion projects distributed without bidding.

The 206 projects were distributed without bidding through amendments brought to the Public Finance Rules.

The government also formed new rules under the Economic Council, but the new rules have not been made public.

Adhadhu understands that companies which got the projects will be issued BML loans at nine percent interest rate.

In a post on social media X, the national bank's Spokesperson Mohamed Saeed insisted that loans will be facilitated in accordance with the banking laws.

"The Bank has and will continue to lend in accordance with its robust credit policies, which are approved independently by the Bank’s board in line with the country’s banking laws and regulations, as well as prudent international standards," Saeed said.

In a letter addressed to BML on Tuesday, the opposition Maldivian Democratic Party (MDP) urged the bank not to finance the projects.

BML Spokesperson indirectly responded to the letter and said "the bank strongly urges stakeholders not to use such information for the pursuit of political objectives."

Many of the projects were awarded to government-affiliated parties. Among them, companies belonging to five ruling party MPs were awarded projects amounting to MVR 746 million.

Some companies were also not listed on the government's register and have no past experience or proof of carrying out projects.

Since assuming office, President Mohamed Muizzu has been influencing the national bank's decisions and operations.

His Cabinet Secretary Ali Habeeb is BML board Chairperson. The board members have been changed and the bank is now used a tool to fulfill presidential pledges.

Muizzu earlier accused BML of planning a financial coup. But there have been no updates on the police investigation launched on Muizzu's orders.