Maldivian judiciary is the biggest obstacle in granting loans: SBI

Sunday, February 19th, 2012

An official of the Male’ branch of the State Bank of India has alleged that the judiciary of the Maldives has been their biggest obstacle in granting loans.
The official made this remark replying to a question posed by Miadhu Daily in reference to a news report on Economic Times stating that “SBI decided not to extend any fresh loans or make new investments in the Maldives until the political situation improves there.”
SBI Official stated that the loan grants will be “slowed down” if the political turbulence in the country continues. He added that the issue is more about the state of the judiciary in Maldives.
“We have no problem with anyone in authority. A Bank is a business institution. There is no political affiliation. However, it should be noted that we have many many cases that we have raised in the courts still pending. And because of this procrastination by the courts, we are facing many losses. Our money is the money of our people. If we are not able to dispatch the people their money, then we are violating their rights,” he said.
The official informed that the bank has raised the issue with President’s Office, the Judicial Services Commission (JSC) and even the Ministry of Tourism after finding no solution by holding discussions with the judiciary.
Economic Times yesterday reported an official of the bank stating that “We will not take any fresh exposure till June this year.”

Reader Comments

  1. SBI has flourished in the Maldives BECAUSE of the bad judiciary. Today SBI branch in male is the most profitable of all SBI branches. If judiciary is bad, why not pack and go. There are Chinese banks ready to come.

    Making such statements in a politically sensitive time would not help SBI

    Posted by Javeedh Hassan | February 19, 2012, 2:10 pm

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