The Bank of Maldives (BML) is embarking on a significant initiative to address the nation's housing shortage, with its CEO Mohamed Shareef assuring minimal financial risks to the bank from the 3,000 new affordable housing unit venture in the Greater Malé area through a newly established subsidiary.
Speaking on PSM News' "Hafthaa 104" programme to mark the government’s second anniversary, Shareef emphasised that while dedicated to supporting the government's housing agenda, these projects are meticulously designed to ensure minimal commercial disruption to the bank's core operations.
In compliance with Maldives Monetary Authority (MMA) regulations, BML has established BML Affordable Home Leasing Pvt Ltd. This subsidiary is tasked with financing and implementing housing projects, having already solidified an agreement with the government to develop 3,000 units across the Greater Malé region.
The initiative falls under the "National Housing Affordability and Accessibility Project," a Cabinet-approved scheme from the 5 October. This vital project aims to boost housing affordability by developing units with the backing of financial institutions, offering a lease-to-own model to make homeownership accessible to a wider populace.
CEO Shareef underscored the bank's considered approach to this venture.
"Lending is one part of the bank's business, and the bank will look at many factors before doing anything. The decision was taken after considering the these factors," he stated, adding that the housing project through the leasing company is structured to protect the bank's financial health as much as possible.
"This is a product that is in line with MMA regulations and banking laws and regulations and is commercially designed to be the least risky and affordable for the bank. It is part of the bank's business portfolio. I would like to emphasise that."
BML Affordable Home Leasing Pvt Ltd will oversee property development through appointed contractors. The government's provision of free land is a crucial element, facilitating the allocation of these housing units at affordable prices under the scheme.
The 3,000 units will be distributed across key areas - 300 units in Villimalé, and 2,700 units split between Hulhumalé Phase 1 and Phase 2.