Ministry to establish development bank, financial authority at SME Hub

Ministry of Economic Development and Trade has announced the decision to establish a financial authority and development bank in the same building that houses Business Center Corporation (BCC)-run SME Hub.

BCC Managing Director Ibrahim Ziyau confirmed to 'Sun', that only two floors run by the corporation will be vacated to establish the said entities.

He added that both the ground level, and the top floor which houses gaming and entertainment facilities will be vacated.

The building will continue to house working spaces for local small-to-medium enterprises (SMEs).

"The other levels do not benefit SMEs. The floors given on rent for commercial uses benefit BCC, so the vendors will continue to operate their businesses in all the other floors except the lowest and top levels," Ziyau commented.

Ziyau said the SME Hub is operated in a private building, while the kiosks are leased at a lower rate due to which BCC was incurring higher expenditure compared to revenue it generates from the premises.

The development bank is being established in line with the state's policies to invest towards sustainable and long-term economic and social development initiatives. The bank will also seek funding for urban development projects initiated by the government as well.

The bank also aims to solve the challenges in raising funds for Public Sector Investment Program (PSIP) through syndication financing.

The development bank will also improve investor confidence and enthusiasm to invest in the Maldives, and retain foreign currency in the Maldivian economy.

The financial authority will develop legal frameworks required to introduce off-shore and on-shore financing services.

Besides this, the authority will carry out necessary works needed in establishing offshore and onshore development banks and international financial centers in the Maldives, and develop the financial sector.

The authority will also conduct research to facilitate modern solutions on both the legal and administrative challenges in creating a healthy and competitive financial system.