Bank of Maldives (BML) has extended 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 introduced an economic relief package to prevent local businesses from going bankrupt amid the COVID-19 pandemic. While loans for large businesses are issued by the BML, loans for small and medium enterprises (SMEs) and freelance workers are issued by SME Finance Development Corporation (SDFC).
In March 2021, the grace period of the loan was extended to six months to facilitate repayment of the recovery loan. However, the grace period of these loans has been extended to 19 months again as many individuals are requesting an extension. The grace period for recovery loans will be extended to 19 months for those who have not extended the grace period in the previous extension, said BML.
In addition, the opportunity to extend the repayment period of the loan to 103 months including the grace period will be opened to all borrowers. The finance ministry will also consider the standards adopted by the ministry and BML in evaluating the loan. The recovery of these loans will facilitate the opening of more such schemes.