Bank of Maldives sends MTDC notice for repayment of Herethere development loan

The Bank of Maldives Plc Ltd (BML) has sent notice to the government-owned Maldives Tourism Development Corporation (MTDC) to settle US$17.5 million overdue from a US$25 million loan provided to develop the Herethere resort in Addu City.

According to Sun Online, while the  loan requires a payment of $435,000 per month until February next year, the government tourism was sent notice by the national bank over non-payment of US$700,000 in line with the scheduled repayments.

“We wanted to sell the resort and completely pay off the bank loan. But the company’s work has come to a halt because of the delay, as the government is unable to appoint directors to the company’s board. We want to sell the resort as soon as possible and complete the repayment of the loan,” an MTDC official was quoted as saying.

Earlier this month, the MTDC board of directors decided to sell its biggest asset, Herethere resort, for US$30 million to a company with a majority stake owned by local tourism magnate ‘Champa’ Hussain Afeef.


2 thoughts on “Bank of Maldives sends MTDC notice for repayment of Herethere development loan”

  1. MTDC is being used a political tool by Gayyoom, Nasheed and Waheed too.

    That is why they are putting monkeys in the board to manage the biggest truism company in Maldives.

    If they really have any interest in managing the company properly they would have been putting educated and experienced people in the board and would have a professional management to run the company.

    It is rather better sell the entire company cash out and then give those money to shareholders, farther than wasting shareholders money to fill the pockets of some individual people.

  2. Exactly what is the politics behind this incredible utter failure? In Mordis, with enough money, and several resorts that were handed over to be developed, even a stupid guy can make this combination work. It will take a genius to make it a failure.

    So what is the deal behind this utter failure? or should I really ask, whats the reason for this successful endeavor by the Government? Success in the sense of having achieved what they sought out to do... to be a failure.


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