While Maldives continues to be marred by the prevailing domestic political crisis, the country got its first-ever private bank today.
President Abdulla Yameen inaugurated the Commercial Bank of Maldives (CBM) with two ATMs and a cash deposit machine in a ceremony in the capital city, Male.
The bank has opened with an initial capital of MVR150 million ($9.75 million).
The newly-inaugurated bank is a joint venture between Sri Lanka's Bank of Ceylon and a private firm, Tree Top Investment Pvt Ltd, with a corresponding 55:45 stakeholding.
Local business tycoon Champa Hussain Afeef, who is also the the chairman of CBM, is a shareholder in the private firm.
CBM will provide Visa and MasterCard services, mobile banking services, housing and business loans. Maldives now has eight banks including CBM.
Meanwhile, Moody's investors service report on the Government of Maldives' B2 issuer rating has predicted a stable outlook saying that the country’s tourism sector has helped it drive robust growth rates along with strong debt affordability metrics.
A narrowly-diversified economy, high debt burden and political risks represent credit constraints, the report points out.