Loans to industries hit MVR 51.7 billion as tourism and construction drive borrowing growth

Loans disbursed to various industries reached MVR 51.7 billion as of April this year, with tourism and construction remaining the largest sectors, according to the latest data from the Maldives Monetary Authority (MMA).

MMA figures show loans to the tourism sector stood at MVR 14.15 billion as of April. This includes loans and advances issued by banks and other financial institutions to both private and state‑owned companies. The amount is 13.5 percent higher than the level recorded in April last year.

In the construction sector, loans totaled MVR 10.01 billion, marking a 24.2 percent increase compared to the same period last year. Loans to businesses amounted to MVR 5.57 billion, including MVR 5.48 billion to wholesale and retail trade and MVR 82.67 million to restaurants and cafes. According to MMA, loans to businesses were 48.8 percent higher than the amount disbursed by April last year.

In addition, MVR 573.07 million has been disbursed to the fisheries sector, while MVR 18.03 million has been issued to agriculture. Both sectors recorded lower borrowing compared to last year, according to MMA data.

Many industries have seen a sharp increase in borrowing this year as businesses continue to face the economic fallout from the war in the Middle East. Tourist arrivals have declined since the conflict escalated on February 28, while global oil and commodity prices have risen. The price of cement in the Maldivian market has also increased significantly, creating serious challenges for construction companies.

Prices of essential goods, including food items, have risen sharply as well. According to the MMA Business Survey, businesses across all major industries are expected to remain in a weaker financial position during the second quarter of the year.