People waiting outside the Central Bank, MMA head office. Dhauru Photo/ Abdullah Anoof Junaid

Maldives central bank flags hike in credit card debt

There are also many cases of credit card defaults.

5 June 2024

By Ahmed Mizyal

There has been an increase in banks lending money to the private sector, with a large part of which accounts for credit cards and instalment schemes related debt by private individuals, the central bank Maldives Monetary Authority (MMA) has said.

Banks' lending to the private sector rose to 10% as of April, according to the MMA's Economic Update Report released on Tuesday.

At the end of March, the figure stood at 8%.

All major sectors such as tourism, construction, personal loans, commerce and real estate saw an increase in lending in April.

The biggest increase was in the loans taken by private individuals by a 27% increase, according to the MMA. The main reason is the increase in credit card withdrawals and borrowing.

However, there has been some decline in the number of education loans disbursed.

While there has been an increase in the number of credit card withdrawals in the Maldives, banks operating in the Maldives have been introducing special promotions and new types of credit cards. There are also many cases of credit card defaults.