Minister of Economic Development Fayyaz Ismail has said the COVID-19 Sustainable Stimulus Loan was formed to assist businesses and islands most affected by the COVID-19 pandemic.
The government has announced two loan schemes under its COVID-19 Recovery Economic Stimulus Scheme, which are the COVID-19 Economic Stimulus Loan and the COVID-19 Sustainable Stimulus Loan. The COVID-19 Sustainable Stimulus Loan was introduced jointly by the Ministry of Finance and the Bank of Maldives (BML).
Speaking at the inauguration ceremony of the latest loan schemes, Minister Fayyaz said the COVID-19 Sustainable Stimulus Loan is designed to be more of a consultancy and support service than another relief loan. The minister said the package will facilitate small and medium-sized enterprises (SMEs) to overcome the financial constraints faced due to the COVID-19 pandemic. He said businesses applying for the loan schemes will receive assistance from consultants and business clinics hosted by the SME Development Finance Corporation (SDFC).
Furthermore, Minister Fayyaz said the government will prioritise assisting businesses and islands most affected by the COVID-19 pandemic, especially in the Greater Male' Region.
He said the government will also prioritise businesses most at risk of closing down such as restaurants, cafés, salons, and gyms. He said businesses will be consulted on how to recover financially, and businesses that are unable to recover will be advised to convert to another sustainable business.
The COVID-19 Sustainable Stimulus Loan will facilitate up to USD 65,000, with a low-interest rate of 6% per annum. The loan scheme will be facilitated through the SDFC and will focus on assisting and reviving existing businesses, according to the Ministry of Economic Development.