President Mohamed Muizzu has decided to defer payment of rent for army and police flats for one year, the President's Office revealed.

The President's Office Public Policy Under Secretary Mohammed Firzul told a news conference today that the President has decided to postpone the repayment of the treasury loan for a one-year grace period. There will be no interest during that period.

Firzul said the President has informed the Finance Ministry of the decision and the Ministry of Finance will continue to restructure the treasury loan.

The construction of SIFCO flats in Hulhumale was started 10 years ago during the Presidency of Mohamed Waheed. The project was initially awarded to Noomadi with the government providing 20 per cent of the project and the rest on contract finance basis.

The project was scheduled to be completed within eighteen months but the project has been delayed due to various issues. In 2016, the government awarded the contract to a private company called Island Expert. However, after the company went bankrupt, the government awarded the contract to China's The Twenty-Third Metallurgical Construction Group in 2021.