President inaugurates Maldives Development Bank

President Dr Mohamed Muizzu has inaugurated the “Maldives Development Bank,” which will provide funding for development projects. The first-ever investment bank in the country has been established by President Muizzu, fulfilling a key presidential pledge. The government aims to offer loans for significant development projects and large private investments at low-interest rates through this new institution. The President announced the establishment of the Maldives Development Bank Limited on 16 May 2024. The Privatisation and Corporatisation Board appointed three members to the bank’s board on 21 August. Two global financial experts were also appointed: Aruni Goonetilleke as Chairperson and Noel Gregor Paterson-Jones as Chief Executive Officer. The Minister of Economic Development and Trade Mohamed Saeed stated that the Maldives Development Bank will act as a partner in funding development projects in collaboration with both domestic and international financial institutions and investors. Minister Saeed further highlighted that the bank will not only provide loans but also introduce additional avenues for financial and technical assistance. He noted these include equity finance, fund syndication, and risk insurance. The Maldives Development Bank is committed to investing in sustainable economic and social development. Its goals include raising funds for infrastructure projects, addressing challenges in financing Public Sector Investment Programme (PSIP) initiatives through syndicated finance, and increasing foreign currency liquidity within the Maldivian banking system. The government asserts that the bank’s establishment aims to boost investor interest in the country.