President Ibrahim Mohamed Solih has announced the SME Development Finance Corporation (SDFC), established by the current government to provide financial support to Small and Medium Enterprises (SMEs), will offer a reduction in interest rates on loans amounting to millions of Rufiyaa, aimed at supporting SMEs.
President Solih unveiled this pivotal decision during a campaign rally held at the Maldivian Democratic Party’s (MDP) Huvadhoo camp on Maaveyo Magu, Male, on Thursday evening. The President outlined the following key points regarding the interest rate cut:
- Interest on these loans will be completely waived, providing a significant financial relief to SMEs.
- The funds previously paid as interest on these loans will be refunded, injecting additional capital into SMEs.
- The repayment period for these loans has been extended to 10 years, offering more flexibility for SMEs to manage their finances.
The move comes in the wake of SDFC disbursing loans totaling MVR 368 million to 2,133 SMEs as part of the Covid assistance scheme, as reported by the Finance Ministry.
President Solih’s announcement is expected to resonate with the SME sector, a crucial segment of the Maldivian economy. By easing the financial burden on SMEs, the government aims to stimulate economic growth and job creation, positioning President Solih as a candidate dedicated to addressing economic concerns.
With the presidential runoff drawing closer, President Solih’s strategy of economic support and financial relief could be a determining factor in securing crucial votes. As the election approaches, the President’s campaign will undoubtedly focus on the potential positive impact of this decision on the nation’s economic recovery and prosperity. The final outcome of the election remains uncertain, but this initiative showcases the President’s commitment to improving the financial well-being of the Maldivian people.