The council of the southernmost Addu City has passed a resolution to hold a five percent stake in the SME bank being established by the incumbent government.
In the resolution submitted by Addu mayor Abdulla Sadiq, he stated that different varieties of financial products and services will be introduced through the enterprise, and welcomed the opportunities granted by the government to contribute to the development of modern financial services.
With the resolution passed unanimously by the council members, Addu City Council will hold a five percent stake in the new SME bank.
President Ibrahim Mohamed Solih recently announced that the government has decided to create a state owned financing company.
The bank, targeted specifically for small and medium enterprises, will be the first institution in Maldives with a stake of local councils. The bank would contribute to generating more wealth and ensure the economic sustainability of the nation.
Speaking at the Guesthouse Symposium earlier last month, the President stated that the bank would be first established as a financial institute which does not take deposits. However, it would be transitioned to a depository company after the company begins its operations.
Issuing of loans will commence next month.
In order to empower city councils and the decentralization of the national economy, the three existing city councils will be stakeholders of the new institution.