Former President Abdulla Yameen Abdul Gayoom said the Bank of Maldives is at risk from repeatedly issuing large sums to cover government expenditure, alleging it recently released nearly a billion Rufiyaa against its Risk Assessment Department's advice. His remarks came amid reports that the government took an MVR 800 million Treasury bill loan from BML to pay public sector salaries this month.
One outlet so far Only Maldives Republic has reported this among the sources we monitor. A gap in what we monitor, not proof that others did not report it.
While seated in the audience during a People’s National Front (PNF) rally on Thursday night, Yameen said BML’s board should work to ensure that the bank is not excessively exposed to risk and that it is not a venture lender.
Word for word from the report in Maldives Republic. Open the report
The Risk Assessment Department has definitively told us not to do this. The bank has already lent MVR 600 million to pay the salaries of state employees
The state won’t take the government to court, and the bank cannot sue. The MMA won’t underwrite this lost money
But here we are, because there are political people on the board now, the board has done it [lent huge sums to the government as a single client]
That is not the way a responsible board of a bank should act
Nothing to compare yet. If another monitored source reports it, its headline appears beside this one.
The bank has already lent MVR 600 million to pay the salaries of state employees
Word for word from the report in Maldives Republic. Open the report
reports that the government took an MVR 800 million loan from BML in the form of Treasury bills (T-bills) to pay public sector salaries this month
Word for word from the report in Maldives Republic. Open the report
