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.


MTDC to sell Herethere resort for US$30 million

The Maldives Tourism Development Corporation’s (MTDC’s) board of directors has decided to sell the government-owned company’s biggest asset, Herethere resort in Addu City, for US$30 million to a company with a majority stake owned by local tourism magnate ‘Champa’ Hussain Afeef.

MTDC Managing Director Mohamed Matheen told newspaper Haveeru yesterday that the decision was made to sell Herethere to Afeef’s Treetop Investment Pvt Ltd because the government corporation did not have the finances to profitably operate the resort.

He added that a large investment was needed to fix problems with the beach and the environment of the resort in the southernmost atoll.

Herethere was the first resort developed and opened by MTDC while Afeef was chairman of the government’s tourism company.

Tourism pioneer Afeef meanwhile told the local daily that the Herethere development would take place in conjunction with the development of the international airport in Gan.

In November 2012, thirty percent of the Addu International Airport Ltd (AIAL) was sold to Afeef’s Kasa Holdings to raise finances to develop the Gan airport in Addu City.