by Ibrahim Mohamed – Minivan News - The attorney general will assist the Bank of Maldives in recovering US$128 million in outstanding loans, according to a bank official today.
Earlier this year, the bank filed a case with the civil court to retrieve the money, but Attorney General Husnu Suood said his office decided to intervene in the public interest. Both members of the public and the government hold shares in the bank.
“Non-performing loans would have a bad impact on the banking sector,” he said. “This is a national concern...We made the decision week ago.”
A bank loan is categorised as non-performing when repayments are seriously overdue.
The attorney general’s office would intervene by acting as a third party throughout the court proceedings, said Suood. Under the constitution, the attorney general has the right to intervene in hearing in the interest of the state or public.
Addressing press today, Acting Chief Finance Officer Nasrulla Abdul Wahid said the money owed comprised large loans to two or three parties. He declined to provide information about the individuals or companies to whom the loans were issued.
An independent audit report of the bank published in January revealed corrupt practices in issuing loans. The report noted that the largest loans released in 2008 were given on the basis of political influence.
Further, while the Maldives Monetary Authority stipulated that no single loan should exceed 40 per cent of the bank’s unimpaired capital, bank loans exceeding this ceiling were issued to two companies.
By the end of November 2008, a total of US$47 million worth of loans had been defaulted on.
Last year, the bank’s profit dropped by 26 per cent, said Wahid, which he believed was due to the non-repayment of loans.
The Bank of Maldives issues loans after getting funds from foreign banks, he said, and delay in payments meant the bank was forced to fork out the money, resulting in an overall decrease in equity.
“Even after auditor general’s report, until today, none of the companies have repaid their non-performing loans,” said Wahid to Minivan News today.
Ahmed Inaz, deputy minister for the economic development ministry, said failure to recover the loans would endanger the banking sector of the Maldives and could lead to the collapse of the economy.
He said non-performing loans stopped investment as the flow of money to the economy had frozen. “This will definitely slow economic growth,” he said.
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5 comments:
Injustice, pain, fear, hate, lust, power hunger, emptiness, it is so deeply rooted in the soul of the whole country that there often seems no escape, maldives is so sad, no escape but into God...seriously, living and dying are for Allah...you can't get justice in this country it is an impossible dream maldivians have been fighting for justice since the country began, heroes betray...No, there is only that you can be a just person yourself, by being open to God and spiritually vigilant... You have to fight injustice so that when you get to Akira (Afterlifee)and face the Judgement, you can at least say you waged the struggle for goodness... There will be justice in the end to those who fight for it even though in this Dunya, this world, the fight seems futile,,, my beloved Maldivians please keep up the battle although it seems like it is for nothing, don't give up hope because you will lose your soul...
sick and tired of anni playing games...Why the heck is anni not strong against yamin, if anni can't reign in the tyranny of yamin he is just a useless clown, sorry but i am gunna explode with frustration, sick n tired of this weak denial of justice in the name of democracy. Anni, yamin is a hellofa evil man you MUST stop thinking he is good damn it anni it is so obvious these Yamin has something on you or over you that if you can't reign him in and end the vioelence maldives needs a new president, someone who can get tough on yamin...why i get the feeling at some point Anni your courage and sense of justice been taken from you...
mikantha dhaa gothun aharen na heevanee anni eheree ranghal sihuru boogle jehifaahen, ajaaibe nun,eves gothakun amalee fiyavalhe naalha, maumon, yameen, adhi aailaagaa faisa beynun kurimeehun engey iruves, anni mihhaaru thedhuvanjeheynee amiila meehe gothugaa eh non ekamaku dhivehinge verieh ge haisiyathun dhivehin ge haagu tha hoadhumuge gothun dhimaa fennan huri kantha balaa thahugeegu kuran jeheyne, list gaa hurihaa bodethi usgetha hadhaa fa hurimeehun maumoon sarukaarugaa bodubai kulhunu meehun ves ranghalhu team eh misarukaarun hovaafa india ceylon hissabu international fenvaruge lawyerun genes massala balan jeheyne, keevebaa,mihen mikan nubalaaigen e ulhenee?????????
Kan'daa has no hard evidence to keep Yamin in captivity; if he had, he would never let them out... hehehehe....bastards
Tell him to go Sultans of the Sea's Aathu and Mohos appartments first
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