The Bank of Maldives (BML) has officially commenced regulatory procedures to acquire the government’s shares in the SME Development Finance Corporation (SDFC), following Cabinet approval of the acquisition.
BML has assured that the process will be carried out in full compliance with all applicable banking laws and regulations. The Bank has already initiated the necessary legal and procedural steps required to finalize the transaction.
The move follows BML’s expression of interest in acquiring the state-backed financial institution, which specializes in small and medium enterprise (SME) financing. The Ministry of Finance conducted a comprehensive review before recommending the sale to the Cabinet.
BML had earlier announced the following financing commitments:
- MVR 500 million in SME loans during the first year
- MVR 300 million investment in MISFI
Upon completion of the acquisition, SDFC will transition into an Islamic financial institution operating as a subsidiary of BML, while maintaining its current lending rates for SMEs. The Bank also plans to implement digital upgrades to streamline loan processing and expand services nationwide.
In a statement today, BML said: “We are now progressing through the necessary regulatory steps”.
The Maldives Monetary Authority (MMA) also issued a statement earlier today confirming that BML’s planned transaction complies with the established legal and regulatory framework.
Following a thorough review of the information submitted by BML, the central bank affirmed that the procedures adopted by the Bank align with MMA’s operational principles. The Authority further noted that no aspect of the process was found to breach any provision of the law.
