Government has provided support with additional Covid-19 related financial aid to the tourism industry. But the current loan schemes are very strict on the requirements which prevents companies that are in dire need of them. As per the industry, it may be ideal for companies who do not have loans and would not want to take a loan on a low interest. Do you think that the industry needs easier access to finance and at a lower rate to revive and sustain or the procedures are fine?

PUBLISHED August 06, 2021

Abdulla Nasheed
Guesthouse Association of Maldives
I feel that the criteria are very strict and many are unable to go through this.
This kind of loans will never been and will help us. To Support for businesses like travel agents should include amendments to the eligibility for the Work Sharing Program, which provides benefits to workers who agree to reduced normal working hours; a temporary wage subsidy equal to 10% of the remuneration paid during that period for small employers; more than such ,of additional support, largely targeted to SMEs; tax deferrals; lowering the Domestic Stability Buffer to allow local banks to inject more money of additional lending; subsidy for businesses; up to 50% lending for SMEs; stable funding to banks and mortgage lenders to continue lending; and providing up to eligible financial institutions to provide Government-guaranteed and funded interest-free loans to small businesses. That’s how we can come up. Loans are not an option always.
The biggest barrier for businesses in Maldives is the difficulty in getting access to finance. The current facilities available from commercial banks are at a very high rate, with high mortgage requirements, and with a very difficult process.
The industry and the economy too, badly need easier access to finance and lower rates of interest
Support to SMEs who have suffered due to covid lockdown should have easy way to access to those loan with less barriers. Lot of SMEs have suffered loss and are not able to fulfill many of the financial requirements of the banks in vogue during normal situation. So government should bring easy way to access funds if the intention is to rescue the industry.