The Ministry of Fisheries and Ocean Resources has so far disbursed loans worth USD 3.3 million to fishing vessel owners to set up Refrigerated Salt Water (RSW) systems.
The Fisheries Ministry and the SME Digital, formerly known as SDFC, first opened the loan application process in September last year. However, the opportunity to reapply for the loan has been opened with additional concessions.
The purpose of this loan facility is to reduce the cost of obtaining ice from the ice plants currently established throughout different islands across island archipelago. It also aims to help fishermen to keep their fish fresh in the boat and increase the amount of time they can spend at sea, further boosting catch and strengthening the fisheries sector.
The ministry revealed that 90 parties have applied for loans to set up the RSW system. Of these, 45 loans have been approved. So far, USD 3.3 million has been allocated for the installation of RSW system.
Fisheries Minister Ahmed Shiyam said the government has opened a small financial facility to set up RSW systems. The facility has now been set up to facilitate vessel owners to apply for loans after listening to their concerns and adjusting the facility accordingly, he said. The minister said the long-term objective of this programme is to facilitate the installation of RSW systems on all vessels that need to install the equipment.
As part of the government’s effort to further ease access to the financing facility, the credit history criterion for accessing the loan facility for RSW systems has been reduced to three months. Previously, this period was one year.
Under SME Digital’s financing scheme, individuals can opt to access loans from USD 6,473 up to USD 64,725 without collateral. Unlike previous loan facilities, the current facility also allows for the installation of solar generators, a step taken to demonstrate government’s focus on encouraging ecofriendly, renewable options in various sectors. The loan facility will have a six-month grace period, with repayment periods of up to 10 years.