Bank of Maldives (BML) has announced the extension of the grace period for its COVID-19 recovery loan. The grace period for BML recovery loan scheme borrowers has been extended to 19 months.
The government had introduced an economic relief package to prevent local businesses from going bankrupt during the COVID-19 pandemic. The BML is responsible for issuing loans to large businesses, while the SME Finance Development Corporation (SDFC) is responsible for loans to small and medium enterprises (SMEs) and freelance workers.
In March 2021, the grace period for these loans was originally extended to six months to make repayment easier. However, due to the large number of individuals requesting an extension, the grace period has been further extended to 19 months. BML has stated that the 19-month grace period will be available for those who have not taken advantage of the previous extension.
Furthermore, all borrowers now have the opportunity to extend the repayment period of the loan to 103 months, including the grace period. The finance ministry will consider the standards set by the ministry and BML in evaluating the loan, and the recovery of these loans will pave the way for the establishment of additional loan schemes.