President Dr Mohamed Muizzu has issued a directive ordering a substantial reduction in interest rates and a relaxation of repayment terms for loans taken from the Bank of Maldives (BML) for the Hiyaa and Vinares social housing units.
In a significant move aimed at alleviating financial pressure on citizens who acquired social housing units through bank loans, the presidential order, announced via a post on X, targets 535 loans related to the completion of Hiyaa flats and 26 loans associated with the purchase of Vinares flats.
These housing developments were established as crucial social and affordable housing projects. Under the new directive, the interest rate on finishing loans for Hiyaa flats will be reduced from 12 percent to 10 percent. Additionally, President has instructed BML to develop a payment plan to assist individuals who have defaulted on their loan obligations.
In parallel, loans taken for the purchase of Vinares flats will see a reduction in interest rate, dropping from nine percent to eight percent as per the presidential directive..
Beyond loan relief, the government had previously announced a decrease in the rents for flats and land allocated under social housing schemes, fulfilling a presidential campaign pledge.
The monthly rent for social housing units in the Atolls has been reduced to USD 215.95 while Hiyaa flat owners has seen their monthly rent slashed from USD 408.56 to USD 258.37.
For Vinares flat owners, the initial down payment has been slashed by 50 percent, with rents reduced by an average of USD 272.37. Additionally, rents for all social housing units in Hulhumalé Phase One have been reduced by 20 percent. These measures are expected to provide considerable financial relief to a significant portion of the Maldivian population.