Grace period extensions open for BML recovery loans

Tourists at the Velana International Airport. (Sun Photo/Ibrahim Ifaz)

Bank of Maldives has opened for applications to increase the grace period of recovery loans obtained by businesses due to the economic situation that was caused by the COVID-19 pandemic. 

The recovery loans were introduced by the bank with the initiative of the Maldivian government and seeks to provide funding for businesses to manage expenditure and operations during the pandemic. 

The Finance Ministry in an announcement today said that applications from those who wish to increase the grace period of the recovery loans for six months were now open.

The Ministry said that it wanted to make the repayment of these loans by businesses as convenient as possible. Under the scheme, businesses whose grace periods have already expired will be able to increase the period by a further six months and obtain a total grace period of 12 months. 

Loan evaluation standards and procedures of the bank and the Ministry would be taken into account when accepting applications to increase the grace period. The Ministry requested any applications for the extension to be informed through the BML before 30 days. If the grace period has already expired or has a duration of 30 days or less, businesses are to inform BML before April 1, 2021. 

Applications for the extension can be made by emailing [email protected]

Under the recovery loan schemes, MVR 585.9 million was issued as well as USD eight million.