Foreign currency loans issued by banks to individuals have been increasing since the middle of last year, according to the Maldives Monetary Authority (MMA).

The MMA said the volume of foreign currency loans began rising significantly from June last year. By December, the year-on-year increase stood at 18 per cent, while it was recorded at 12 per cent in June this year.

The authority said the increase indicates stronger financing activity in key sectors of the Maldivian economy.

A significant share of these loans has been directed towards the tourism sector. The MMA said increased foreign currency financing could support further expansion of the country’s largest foreign exchange-earning industry and encourage investment.