The Maldives Monetary Authority (MMA) has confirmed that the Bank of Maldives’ (BML) acquisition of the SME Development Finance Corporation (SDFC) is being carried out in line with the laws and regulations of the Maldives.

The acquisition, officially announced on Sunday, has prompted public allegations that the transaction may violate national banking regulations.

In response, the central bank denied these claims and stated that it is reviewing whether the acquisition is proceeding in line with its internal procedural requirements. 

According to the MMA, BML has assured the authority that the transaction is being conducted in line with applicable legal procedures and regulatory standards. The central bank also stated that BML has begun fulfilling the steps mandated under the law to complete the acquisition.

The Government approved the sale of SDFC shares to BML following Cabinet approval of a proposal initiated by the bank. The move aims to strengthen SDFC’s operational capacity while ensuring the continuation of its role in supporting small and medium-sized enterprises (SMEs).

Amid concerns that the acquisition could lead to higher interest rates for SMEs, the Government has stated that borrowing costs will not increase. Existing loan terms and interest rates will remain unchanged during and after the transition.