Statistics published by Central Bank Maldives Monetary Authority (MMA) has shown that the value of non-performing loans increased by 13% in 2019 compared to the previous year.
The Quarterly Economic Bulletin on the final quarter of 2019 said the absolute value of non-performing loans exceeded MVR 297.6 million. The reason for the increase is mainly due to few large loans becoming non-performing over the period, said the report.
However, the banking sector as a whole has been performing well, and remained strong at the end of the quarter, the report said.
Credit to the private sector continued to grow and stood at MVR24.5 billion at the end of December
2019, the report said. This marked an annual growth rate of 8% (MVR1.7 billion). During the quarter, credit extended to tourism, construction, commerce and as personal loans accounted for the highest shares of credit over the period.
MMA said the credit extended as personal loans continued to show a remarkable growth, recording 34% at the end of the period, reflecting the rise in credit for credit cards and consumer durables.