Minister of Economic Development Fayyaz Ismail has announced that a bankruptcy and insolvency act will be introduced next year.
While speaking at the inauguration for the Bank of Maldives' Business Centre on Tuesday, Minister Fayyaz shared the challenges and experiences he faced during his time at BML.
Likewise, he described difficulties faced by the borrower and guarantor due to the long duration incurred in selling off the mortgage and assured the new bankruptcy and insolvency act will resolve these issues.
Fifteen years ago, I worked at BML as a lawyer for two or three years. Therefore I am aware of the difficulties faced by both parties. Inshallah, I will propose a bankruptcy and insolvency act to the parliament by early next year which I believe will help ease these challenges. I have no doubt that it will increase the confidence of the struggling borrower, the bank, and the investorMinister of Economic Development Fayyaz Ismail
According to the minister, the legislation will be a safety net, reassuring that the current administration will ensure the welfare of all Maldivian citizens in any situation. He also added that he has requested the ministry to research such "safety net" options for businesses and corporations that are within the ministry's authority as well.
In his concluding remarks, the minister expressed his hope for increasing economic growth with the launch of business centers targeting Small and Medium Enterprises (SMEs) and gave his assurance of the administration's efforts to bolster local businesses with reforms to policies and legislation.
