Maldives Monetary Authority (MMA)’s Monthly Economic Update Report for November shows the annual growth rate of credit to private sector has increased by eight percent, compared to six percent in September of this year.
According to the report, credit to major sectors in the Maldives expanded in October. These sectors are personal loans, tourism, commerce, construction and real estate. The report also highlights personal loans registered the highest growth, and an annual increase of 19 percent. Meanwhile, the tourism industry accounts for the largest share of bank credit with 35 percent, registering a marginal increase.
The central bank also provided details on the factors that led to the increase in personal loans. Credit lent in the form of credit cards and consumer durables drove the upward trend supplemented by a marginal increase in educational loans. As for the tourism sector, the annual increase in credit to the sector was driven by an increase in credit lent for working capital, new resort development and guesthouses.