Aimed at expanding home ownership opportunities, the MMA’s new regulations mandate all commercial banks in the Maldives to allocate between 10 percent to 15 percent of the total loan portfolio to the Inclusive National Affordable Housing Scheme.
BML
The Bank of Maldives (BML) has signed an agreement with the Ministry of Construction, Housing and Infrastructure to secure land in Hulhumale’s Phase 1 and 2, and Vilimale’, for the development of 3,000 housing units under the Inclusive National Affordable Housing Scheme, as mandated by the Maldives Monetary Authority (MMA) to all banks.
This follows the Cabinet decision to establish the National Housing Affordability and Accessibility Project to improve access to affordable housing in the country, a component of which includes developing housing units in collaboration with financial institutions and offering them to the public through a lease-to-own model.
Aimed at expanding home ownership opportunities, the MMA’s new regulations mandate all commercial banks in the Maldives to allocate between 10 percent to 15 percent of the total loan portfolio to the Inclusive National Affordable Housing Scheme. Following this requirement, Bank of Maldives subsequently formed and registered a new 100 percent owned subsidiary, BML Affordable Home Leasing Pvt Ltd, with MMA’s approval in line with Section 4(a)(1) of the INAH regulation, which will be fully compliant with Shari’ah principles.
The agreement was signed by the Minister, Dr Abdulla Muththalib, and the Managing Director of the newly registered subsidiary of Bank of Maldives, BML Affordable Home Leasing Pvt Ltd, Hassan Shaam, at an event held this morning.
As the largest bank in the country, holding over 52% of the total loan market share, we recognize the tremendous privilege and responsibility we have in positively contributing to this critical project. We are proud to be the first bank in the country to begin work towards implementing this initiative with the signing of today’s agreement. This is a key step forward in fulfilling the requirements of the scheme and supporting the Government’s commitment to providing affordable housing solutions for Maldivian families. As always, the Bank will ensure compliance with local regulatory requirements and follow international best practices to uphold shareholder and customer interests. The housing units will be financed by the Bank and constructed through qualified and experienced developers, under a lease-to-own model for first-time homeowners. The Bank will carry out this project so that individuals can become homeowners through a structured and affordable process. Residents can lease the property while making monthly payments, and upon the completion of these payments, the ownership of the property will be transferred to the resident.
The bank also stated that they have already invited selected developers, both local and foreign, to submit Expressions of Interest, following which they will carry out the necessary evaluations and due diligence and sign MOUs to progress this initiative.
