Gov’t to Waive Interests of COVID-related Loans, Reveals Muizzu

Interest on loans acquired through the Housing Development Finance Corporation (HDFC) and the SME Development Finance Corporation (SDFC) during the COVID-19 pandemic will be waived, revealed President Mohamed Muizzu while speaking at a ceremony in Fonadhoo island last Thursday.

“We will open applications (to waive interest) once government offices re-open after the Eid holidays. ,” stated President Muizzu during his address.

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President Muizzu highlighted the significance of this move, emphasising that it would alleviate the financial burden on individuals and businesses struggling to repay their loans through SDFC following the impact of the COVID-19 pandemic.

Previously, in September of the preceding year, President Solih had announced plans to completely waive interest on SDFC loans to small businesses, along with providing refunds to those who had already paid interest. However, President Muizzu pointed out that these plans were not effectively realised.

The interest waiver extends to housing loans obtained through HDFC, acknowledging the financial strain faced by homeowners amidst the pandemic.