International Finance Corporation (IFC), a member of the World Bank Group, is investing up to USD 50 million in Bank of Maldives (BML) to provide financing for private sector companies and small and medium sized businesses in the tourism sector.

The IFC’s move is part of the first phase of crisis support for countries as the funds are to help preserve jobs and combat the negative shocks of COVID-19 on the Maldivian economy. The investment is set to be released in three tranches of which the first tranche comprising of USD 20 million was committed today.

It will allow BML to provide much needed working capital finance, which is expected to benefit businesses, their employees and suppliers in tourism and related industries. While yet unconfirmed, there is also provision to mobilize up to a further $50 million in loans to support Bank of Maldives.

CEO and Managing Director of BML, Timothy Sawyer said that as the largest bank in the country and the leading lender to the tourism industry, BML has already designed a short-term financing program to support severely affected businesses, providing working capital to resorts and guesthouses to help tide them through the pandemic.

“This injection of millions of dollars in support from IFC is extremely timely and will provide further support to our efforts to respond to the crisis.” Sawyer said.

Tourism arrivals in Maldives started to fall from February onwards, declining 63 percent year on year in March and subsequently reaching zero as the country closed its borders in March. An estimated one-third of adult males and a quarter of women are engaged in tourism-related jobs. A recent UNDP and Ministry of Economic Development report showed that 22,000 local resort employees have been directly affected as a result of COVID-19 impacts.

IFC Country Manager for Maldives and Sri Lanka, Amena Arif, said that the IFC recognizes the efforts to revive tourism are now at a critical point and require a coordinated, flexible and fast response.

“IFC’s financing for the Bank of Maldives will help support the reopening of the country’s largest industry and fund the Bank’s small and medium sized enterprise value chain. We are prepared to do more to assist as the country moves from recovery to rebuilding. IFC stands with the Maldives at a time when it matters the most.” She said.