The Bank of Maldives (BML)’s Chief Executive Officer (CEO) and Managing Director Mohamed Shareef has stated that the bank’s participation in the government’s housing initiative is not driven by profit, but aims to solve one of the Maldives’ biggest social problems, affordable housing.
BML began housing activities in October last year by establishing a dedicated subsidiary company to manage the projects. The initiative follows changes in financial institution policies that enable banks to participate in housing projects, he noted.
Shareef described the launch of construction on such a housing project within the short time that has passed since the subsidiary company’s establishment as a significant achievement, adding that it reflects strong policies and leadership. He said the initiative aims to utilise the banking system to support national development and citizen welfare.
The project uses a lease-to-own model, allowing families to make affordable monthly payments without large upfront sums. Shareef noted that this is the first project to adopt such a model through a bank.
BML is already providing support under various schemes to support housing. According to Shareef, the equity requirement was reduced from 20 percent to 5 percent under the government’s Hiyaavehi housing scheme. The scheme provides soft loans of up to USD 194,500, and USD 136 million allocated in total thus far.
The BML Affordable Home Leasing Company, a BML subsidiary, is developing a total of 3,260 housing units under the Inclusive National Affordable Housing (INAH) initiative by the Maldives Monetary Authority (MMA). Units will be built by China Machinery Engineering Corporation (CMEC), alongside Chinese company BUCG and local companies Amin Construction Pvt Ltd, FW Construction Pvt Ltd, and Rasheed Carpentry and Construction Pvt Ltd (RCC).
The foundation stone for the 1,224 housing units being developed by CMEC in Hulhumale’ Phase III was laid during a ceremony presided over by President Dr Mohamed Muizzu on 21 March.