BML says following legal process in SDFC acquisition

The Bank of Maldives (BML) has issued a statement confirming that its acquisition of a majority stake in the SME Development Finance Corporation (SDFC) is being carried out in compliance with legal and regulatory procedures.

SDFC was established by the previous administration to provide financial services to small and medium-sized enterprises in the Maldives.

BML stated that the transaction would be conducted after completing all procedures required under the Banking Act and related regulations. The bank has commenced the necessary phases of this process.

In response to claims regarding the legality of the acquisition, the Maldives Monetary Authority (MMA) clarified that it had not declared the transaction unlawful.

“The Authority has examined whether BML followed the necessary procedures for such a transaction in line with the general rules of the Authority,” MMA stated. “The acquisition has not been determined to violate the Banking Act.”

MMA further confirmed that the information shared by BML indicates the transaction is being conducted in accordance with the applicable laws, regulations, and procedures.

BML also assured that loans issued through SDFC will continue to be offered at the same interest rate, maintaining consistency in its SME banking operations.