The Maldives Monetary Authority (MMA) has officially announced the establishment of a new fund designed to provide affordable housing loans through the nation's commercial banking system.
This significant initiative, now formalised under the gazetted Inclusive National Affordable Housing Scheme Regulations, aims to ensure accessible housing finance across the archipelago, aligning with the principles of Islamic financing.
The comprehensive regulations detail the framework for the Inclusive National Affordable Housing Scheme, establishing its operational guidelines and the fund's management. The scheme's primary objective is to offer affordable financing solutions for the purchase of residences within the capital Male’ area. Scheduled to run for an initial period of five years, this scheme is set to provide long-term support for aspiring homeowners.
Under the new regulation, the Inclusive National Affordable Housing Scheme and its accompanying fund will be meticulously administered by a financial institution specifically designated by the MMA. A cornerstone of the fund's operational model is the mandatory contribution from commercial banks where unless otherwise specified by the MMA, each bank is mandated to contribute between 10 percent and 15 percent of the total amount of their loans and debts portfolio, thereby ensuring a robust capital base.
Financial assistance under the scheme will be disbursed through two distinct avenues - the Type A financing facility and the Type B financing facility. The MMA will retain the prerogative to determine the specific allocation of funds for each facility type.
Designed for long-term affordability and accessibility, the financing facilities will typically offer terms of at least 25 years, though a shorter repayment period can be granted if explicitly requested by the facility taker.