BML rejects claims of loan irregularities linked to govt projects

The Bank of Maldives (BML) on Wednesday rejected allegations that it was issuing loans to companies awarded government projects without an open bidding process, in breach of banking laws and procedures.

Last month, the government signed 206 agreements with private companies to implement projects in nine sectors. The projects, awarded under contractor financing, were given to 53 companies at a value of MVR 2.7 billion. The projects had not been publicly announced.

According to the Ministry of Finance, the companies will receive financing based on government-approved PSIP agreements for domestic contractors under the investor-finance model.

BML spokesperson Mohamed Saeed said in a post on X that claims the bank was issuing loans to contractors in violation of the Banking Act were baseless and not supported by reliable information.

He said the bank issues loans according to its credit policies, which are formulated in line with Maldivian banking laws, regulations and international standards, and that lending decisions are taken independently by the bank’s board.

“Distributing misleading or inaccurate information is irresponsible, and the Bank strongly urges stakeholders not to use such information for the pursuit of political objectives,” he added.

According to earlier disclosures, BML’s total loan portfolio stood at MVR 23.7 billion at the end of the third quarter of this year. New loans amounting to MVR 6.5 billion were issued during the year.

The total amount of loans disbursed across sectors up to September last year was: