President Ibrahim Mohamed Solih has revealed that the Hiya Flats project, which began during the Yameen administration, will cost an additional MVR 3.2 billion due to the altered payment structure for each flat.
President Solih stated at a news conference held at the President’s Office on Tuesday that the Hiya Flats project was started by the Yameen administration with a commercial loan at an interest rate of 8% and a repayment period of 20 years. He stated that at the time, the valuation of each flat was MVR 1.2 million, and that if the sum were repaid over 20 years, the monthly rent would be MVR 10,400.
According to President Solih, the property land cost and maintenance costs were excluded to cut the valuation of each flat to MVR 1 million and the interest rate was reduced to 6.7 percent with a repayment period of 25 years.
Solih claimed that cutting the monthly rent even more would result in considerable losses for the government. He further asserted that he sees no possibility to reduce the rent further than it is already, but that the social housing project started by his administration would have a cheaper rent.
The current administration has set the monthly rent for Hiya Flats at MVR 7,500, with a move-in date of July 15 and a three-month renovation period.