Maldives Monetary Authority (MMA) has revealed that debt moratoriums were issued to more than MVR 17.8 billion worth of loans during the COVID-19 pandemic last year.
While briefing to the parliament’s SOE committee, MMA said up to 23,718 loans were issued debt moratoriums last year. This accounts for 18 percent of loans disbursed through banks and other financial institutions. Moreover, the majority of the loans disbursed to the construction/real estate and tourism industry were approved for moratorium along with loans for personal financing for private individuals.
Government issued a special debt moratorium to ease the burden on individuals and businesses during the COVID-19 pandemic last year.
The debt moratorium allowed customers to defer monthly principal and interest repayments for 6 months. At the same time, the tenor of the loan was extended by 6 months allowing more time to repay the accrued interest and principal repayments. Following the moratorium period, the repayment amount was reduced by 20% for a further 6 months.