MIFCO, which was a subsidiary of STO, has been converted into a 100 per cent government-owned company.

STO previously held 99.99 percent stake in MIFCO, while Allied Insurance, which operates under STO, held 0.01 percent stake.

In a post on X, the Finance Ministry said MIFCO has been converted into a 100 percent government-owned company and the share swap agreement was signed on December 20 and the purpose of the change was for MIFCO to provide financial assistance and other assistance in line with the government's policy.

Addressing a press conference on December 5, President Dr. Mohamed Muizzu announced that he has decided to end MIFCO's status as a subsidiary of STO and convert it into a 100 percent state-owned company.

"The idea is to ensure that the fisheries sector continues to function in the coming days so that we can fulfill our commitments to the fishermen," he said.

He also said that a special cooperative would be set up for fishermen and MIFCO would be made a shareholder in the cooperative.

Establishing a cooperative dedicated to fishermen and making MIFCO a shareholder in the cooperative was one of President Muizzu's election promises.

"Most of the initiatives that have been taken up in collaboration with the fisheries sector are linked to strengthening MIFCO," he said.

MIFCO, which was established as a separate company under former President Maumoon Abdul Gayoom, was taken over by the government and transferred to a subsidiary of STO in 2016 under former President Abdulla Yameen.