MMA confirms no legal irregularities in BML’s acquisition of SDFC
The MMA said it had reviewed the matter and found no violations of its regulations or the Banking Act.
The Maldives Monetary Authority (MMA) has stated that there are no legal issues in the Bank of Maldives’ (BML) acquisition of a majority stake in the SME Development Finance Corporation (SDFC).
The central bank made the statement following a report by a Maldivian newspaper which alleged that the transaction was unlawful. In a response to Atoll Times, the MMA said it had reviewed the matter and found no violations of its regulations or the Banking Act.
According to the MMA:
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BML’s acquisition of SDFC does not violate the Banking Act
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BML has confirmed that all aspects of the transaction are in compliance with applicable laws, regulations, and procedures
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The authority has reviewed the processes and confirmed adherence to general rules for such transactions
The MMA also said BML had assured that loans issued by SDFC will continue to be provided under the existing interest rates.
BML has outlined its post-acquisition plans, including:
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Financing of MVR 500 million in the first year
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Investment of MVR 300 million over three years through the Maldivian Islamic Social Finance Initiative (MISFI) to support community development and sustainable business initiatives
Further details regarding the governance and operations of SDFC following the acquisition will be announced by BML at a later date.
