Finance Ministry on Saturday revealed that action will be taken against those who violate the loan conditions of economic relief package initiated by the government in response to the COVID-19 pandemic.
The government initiated the economic relief loan programme as a measure to mitigate the economic crises due to the COVID-19. However, the main conditions of the loans are not to terminate any employees and not to reduce the salaries of employees.
Responding to a question raised by a reporter in a news brief, Finance Ministry’s Chief Financial Budget Executive, Ahmed Sharwash said as per the loan agreement, action can be taken against those who terminate employees after obtaining the loan.
The loan will be disbursed in part-payments. Thus, if there is a violation of the agreement, the remainder of the disbursement will be withheld, and the bank has the authority to charge higher interest rates.
The government had previously announced that companies that terminate employees and reduce staff salary can apply for the loans after reversing their decisions.
Under the package, loans will be granted to improve the working capital of the businesses with a 6% interest rate that has to be paid back in three years. The loans will have a grace period of 6 months,
In line with that, over 190 loans worth MVR 17.5 million have been issued through SME Development Bank, Loans worth of over MVR 123 million have been issued through Bank of Maldives to resorts and major business ventures.
The news brief held on Saturday by NEOC, Finance Ministry and Pension Office
