President: ‘Hiyaavahi’ a permanent scheme; MVR 2 billion in home loans each year

President Dr. Mohamed Muizzu says the ‘Hiyaavahi’ finance scheme launched on Tuesday isn’t a one-off scheme, but a permanent one which will see up to MVR 2 billion in home construction loans issued each year.

During his 2023 presidential campaign, President Muizzu pledged to introduce home construction loans at a low interest rate – one of the key pledges he made to tackle Maldives’ growing housing crisis.

This pledge materialized in the form of the ‘Hiyaavahi’ finance scheme launched on Tuesday morning – a scheme that offers home construction loans at 5 percent interest rate.

Addressing the launch event, President Muizzu said this scheme will continue for the next four years. He said that MVR 1 billion will be allocated in the state budget each year for this scheme.

“This is not a scheme we are starting today and then ending next year. This, In Sha Allah, is a permanent scheme that will continue each year. We have allocated MVR 1 billion to run this scheme, the scheme we announced today, in the 2025 budget we have submitted for approval this year,” he said.

President Muizzu said the government plans to double the MVR 1 billion through investment, and issue MVR 2 billion in home construction loans each year.

“As the MVR 1 billion will be invested and spent in the manner we have planned, it is effectively more than MVR 2 billion in loans under this scheme with the aforementioned MVR 1 billion cap…” he said.

President Muizzu said the scheme offers relief for people who are unable to build homes due to financial constraints.

He also reaffirmed his commitment to delivering his pledges.

President Muizzu said the ‘Hiyaavahi’ finance scheme will produce results in resolving the country’s housing crisis.

“This loan scheme will, In Sha Allah, facilitate this for thousands of citizens,” he said.

President Muizzu said he hopes that by the end of his term, there isn’t a single Maldivian citizen who lacks housing.