President Dr. Mohamed Muizzu, on Thursday, incepted a state-owned establishment designated as Development Bank of Maldives Limited.

The state-owned company, where the government holds 100 percent shares, was established under authority granted to the President by Section 15 of the Companies Act (Act No. 7/2023).

According to the President’s Office, the company was formed in alignment with the government’s policies, including the funding of infrastructure projects, investing in sustainable economic and social development, addressing the difficulties associated with financing PSIP projects through syndicated financing, and fostering a greater interest in maintaining foreign exchange within the nation's banking system.

The registered address of the company is Ministry of Finance, Ameenee Magu, 20379, Male, Maldives.

Discussions to incept a development bank were held during a cabinet meeting back in January.

Development banks are in place to provide medium and long-term capital for productive investment, often accompanied by technical assistance. They concentrate on fostering economic development by providing financing for projects and sectors that contribute to societal progress.