Bank of Maldives (BML) has announced the bank will not be compounding interest on all personal, housing and business loans for which it had earlier announced a moratorium.
The national bank of Maldives on 25 March 2020, announced a 6-month moratorium on the aforementioned loan categories.
In a statement released on 29 March 2020, Sunday, the bank confirmed it “has been working hard with international accountancy bodies, Government and its regulators to ensure that its support to the Maldivian economy is what is needed” along with ensuring the compliance with international standards.
The interest charged during the 6-month period, where the moratorium will be effective, will be added to the outstanding loan amount and spread over the remaining period of the loan.
Moreover, BML further decided on relaxing the eligibility criteria while in order to apply customers should not have more than 1-month loan installment overdue.
According to the bank, other customers “may bring their accounts up date, as outlined before, and will then be eligible at any time during the moratorium period.”
BML’s statement further confirmed customers will be sent individual details on the moratorium and the process to apply online starting from 30 March 2020.
As for BML Islamic customers with personal, housing and business financing the above will remain applicable with the exemption of customers with Murabaha financing.
For customers with Murabaha financing, BML will be contacting them separately to detail on how to proceed.
BML has decided to announce moratorium on loans in light of the rapidly spreading COVID-19 that has brought the overall economic activity to a standstill.