Govt applies for license to operate development bank

The Economic Ministry has filed an application with the Maldives Monetary Authority (MMA) seeking a license to operate the Development Bank of Maldives.

Development banks are financial institutions with the focus of introducing new businesses, industrial activities, and other economic initiatives in countries.

The banks are primary lenders for new ventures with loan facilities to setup businesses and activities as well.

The establishment of such an institution in Maldives is one of President Dr. Mohamed Muizzu’s electoral pledges.

In a post on X, Economic Minister Mohamed Saeed said they applied for a license to operate the development bank on Sunday morning.

We have submitted the application form to obtain the licence to operate the Development Bank of Maldives as envisioned by HE President Dr @MMuizzu pic.twitter.com/AXjO0a9y5j

— Mohamed Saeed (@em_saeed) July 28, 2024

President Muizzu used the powers vested in him under the Companies Act to form the Development Bank of Maldives Limited back in May.

Saeed told Public Service Media (PSM) on Saturday night that two financial experts with experience in running major international banks have been appointed to the development bank’s board.

He added that the government has also formulated a business plan and conducted necessary feasibility studies.

Saeed that while MMA processes the license application, the government will allocate a building to run the bank.

He said the government is working to open the bank next month.

However, Saeed had previously said that work on the bank would be completed this month. He said the delay was because the government was seeking top experts for the initiative.

Saeed said that the government has posted a job vacancy in an international newspaper seeking a foreigner to head the bank.