Gov’t will continue to provide financial assistance to small and medium enterprises- Pres.
President Mohamed Nasheed has said that small and medium enterprises in the Maldives will continue to receive government financial assistance this year.
In his Presidential address to the parliament Thursday, President Nasheed said that financial assistance or a program of providing soft loans worth Rf 78 million is currently in place with focus on various economic sectors.
In this regard, the President said that a program worth Rf 12 million is underway to increase small and mid-market businesses between 2011 and 2012. He said that business development centers have been established in Kulhudhuhfushi, and Hithadhoo and 489 participants were trained by the end of 2010. In these programs, projects to diversify fisheries, build guest houses in inhabited islands, handicraft, cultural artwork and farming are included. He assured that the government shall not falter in this work as they are related to the economic growth of the country.
The President noted the important steps taken to eliminate obstacles facing those wishing to start a business, include enabling vital information, trade licenses and permissions to be submitted and received via the Internet. He added that these will be facilitated this year.
President Nasheed asserted that the main obstacle faced by Maldivian traders in developing their businesses further, is the problem of sourcing finance.
“To mitigate currency shortages for Maldivian traders, the government will develop a collateral guarantee scheme worth Rf 300 million via Maldivian banks this year. This scheme will help to provide speedy government interventions for businesses that can be developed through market mechanisms. This project would make it easier for businesses to obtain loans without facing complications in the provision of collateral. This credit scheme is especially developed for infrastructure development,” he said.
The President said that programmes for the development of harbor areas in various islands will be initiated this year. He said that the opportunity to submit expressions of interest will be open soon. He added that various trade opportunities will open up for private parties under this project.
President Nasheed reiterated that priority is being extended to small and medium enterprises to increase job opportunities in the atolls, and widen the self-sufficiency of the people. He said that it is also designed to increase exports and clear pathways for a greater number of Maldivians to have easy access to foreign currency. He added that these measures are important for the socio-economic growth of Maldives.
Furthermore the President expressed his happiness to note that a rebate of 30% has been waived from import duties for goods unloaded at regional harbours.
“Under this reduction, from July to December, goods worth Rf 3,765,000 have been cleared from Kulhudhuhfushi harbour. From January to July of 2010, goods worth Rf 5,191,000 were cleared from Addoo Hithadhoo harbour, and with the introduction of the rebates on import duties, goods worth Rf 44,535,000 were cleared from July to December. This is an increase of 857 percent in comparison to the first 6 months of 2010,” he said.