Speaker of the Parliament and former president of Maldives Mohamed Nasheed has stated that housing issues faced by the country remain unresolved due to issues with the justice system of Maldives.
Speaking at an event held at Hulhumale' on Monday to launch a private residence "Glamour Residence", Nasheed said opportunities must be paved for businesses, and ways to arrange mortgages for businesses must be facilitated.
Nasheed stressed the need for long term loans from banks, and said arrangements must be made such that loans can be arranged after mortgaging purchased flats. In the case the loans are not repaid, selling off the mortgaged properties under an easy procedure must be facilitated, he added.
"If the person taking out the loan does not repay the loan, banks must be able to sell off the mortgaged properties at the earliest. If the properties remain unsold, the amount available for borrowing from the bank will decline significantly. There are two reasons for this: firstly, it increases the bank's risk, which increases the amount the bank has to contribute. Secondly, if the loan remains unpaid, the bank will not have funds", said Nasheed.
Nasheed said the biggest obstacle between businesses building homes and selling them with the bank's assistance is the country's justice system. Nasheed said due to shortcomings in the system, several court cases on dormant accounts remain unresolved and unmoving at the courts, which in turn makes it difficult for banks to issue mortgages.
"This makes acquiring housing difficult. Due to this, a dignified life is not easily attained - all because issues with the justice system", said Nasheed.
Nasheed said the work of the Parliament is to enact laws to facilitate businesses to thrive, and reforming the judiciary.
Nasheed at the opening ceremony of Glamour Residence - Photo: Anam | AVAS
