Regulation on Inclusive National Affordable Housing Scheme

Unofficial English Translation REGULATION ON INCLUSIVE NATIONAL AFFORDABLE HOUSING SCHEME Regulation number: 2025/R-109 (Effective 23rd October 2025)

1 TABLE OF CONTENTS CHAPTER ONE PRELIMINARY Introduction and title.....................................................................................................................2 CHAPTER TWO INCLUSIVE NATIONAL AFFORDABLE HOUSING SCHEME Inclusive National Affordable Housing Scheme .........................................................................2 Fund for Inclusive National Affordable Housing Scheme..........................................................3 Financing facilities that may grant from the Fund......................................................................3 Eligibility criteria and general terms of financing facilities ........................................................3 Operation and general terms of Type A financing facility ..........................................................4 General terms of Type B financing facility...................................................................................4 CHAPTER THREE RESPONSIBILITIES OF THE INSTITUTION OPERATING THE SCHEME Responsibilities of the Institution operating the Scheme ..........................................................5 Submission of information...........................................................................................................5 Financial statements and auditing ..............................................................................................5 CHAPTER FOUR OTHER MATTERS Incentives for the Banks and the Institution operating the Scheme .........................................6 Measures for non-compliance .....................................................................................................6 Definitions......................................................................................................................................6 Entry into force ..............................................................................................................................7

2 REGULATION ON INCLUSIVE NATIONAL AFFORDABLE HOUSING SCHEME CHAPTER ONE PRELIMINARY Introduction and title 1. (a) This Regulation establishes the Inclusive National Affordable Housing Scheme and the Fund, and provides for their operation for the purpose of making affordable housing finance available in accordance with Islamic financing principles. (b) This Regulation is issued pursuant to, sections 22 (u), 38 (a) and 38 (d) of the Maldives Monetary Authority Act. (c) This Regulation shall be cited as the “Regulation on Inclusive National Affordable Housing Scheme”. CHAPTER TWO INCLUSIVE NATIONAL AFFORDABLE HOUSING SCHEME Inclusive National Affordable Housing Scheme 2. (a) The “Inclusive National Affordable Housing Scheme” is hereby established, on the commencement of this Regulation, with the participation of all the Banks operating in the Maldives. (b) The objective of the Inclusive National Affordable Housing Scheme is to facilitate access to affordable housing finance in the Greater Male’ region. (c) The Inclusive National Affordable Housing Scheme shall operate for a period of 5 (five) years. (d) The Inclusive National Affordable Housing Scheme and the Fund shall be operated by a financial institution designated for that purpose by the Authority.

3 Fund for Inclusive National Affordable Housing Scheme 3. (a) The “Fund for Inclusive National Affordable Housing Scheme” is hereby established, on the commencement of this Regulation. (b) Unless otherwise determined by the Authority, each Bank shall contribute to the Fund, an amount between 10% (ten per cent) and 15% (fifteen per cent) of the Bank’s total loan portfolio. (c) Each Bank shall contribute to the Fund, the amount specified in paragraph (b) of this section, in such manner and within such period as may be prescribed by the Authority. Financing facilities that may grant from the Fund 4. (a) The Fund may provide the following 2 (two) types of financing facilities. (1) Type A financing facility: Lease ending with ownership facility; (2) Type B financing facility: End-user financing facility. (b) The Authority will determine the amount of funds to be allocated from the Fund to each type of financing facility specified in paragraph (a) of this section. (c) Unless otherwise determined by the Authority, the tenure of financing facilities granted from the Fund shall be not less than 25 (twenty-five) years. However, the tenure may be reduced upon the request of the borrower. Eligibility criteria and general terms of financing facilities 5. (a) Financing facilities from the Fund shall be granted only to first-time home buyers who do not own any residential property, and shall be subject to such additional eligibility criteria as may be prescribed by the Authority. (b) The Authority will determine and make public the housing projects for which financing facilities may be granted from the Fund, and the eligibility criteria and requirements for obtaining such facilities.

4 Operation and general terms of Type A financing facility 6. (a) The Institution operating the Scheme shall, using the funds allocated by the Authority for Type A financing facility under section 4 (b) of this Regulation, procure the construction of residential properties through a developer and grant units of such properties by means of a lease ending with ownership. (b) The general terms of Type A financing facility to be granted from the Fund are as follows. (1) Unless otherwise specified by the Authority, the annual rate of profit under the facility (lease ending with ownership) shall be 5% (five per cent) of the principal amount of the facility. (2) Upon full payment of rent in accordance with the facility (lease ending with ownership) agreement between the Institution operating the Scheme and the borrower, ownership of the property under the facility shall be transferred to the borrower. (c) A borrower shall not be required to contribute any equity under a Type A financing facility granted from the Fund. (d) A borrower may be required to make a security deposit as prescribed by the Authority, under a Type A financing facility granted from the Fund. General terms of Type B financing facility 7. (a) The general terms of Type B financing facility to be granted from the Fund are as follows. (1) Unless otherwise specified by the Authority, the annual rate of profit under the Type B financing facility shall be 6% (six per cent) of the principal amount of the facility. (2) A borrower shall contribute 5% (five per cent) of the facility as equity, under a Type B financing facility.

5 (b) No additional security or mortgage shall be required from a borrower under Type B financing facility granted from the Fund, other than a mortgage over the residential property being financed. CHAPTER THREE RESPONSIBILITIES OF THE INSTITUTION OPERATING THE SCHEME Responsibilities of the Institution operating the Scheme 8. The responsibilities of the Institution operating the Scheme are as follows. (a) Managing the Fund in accordance with the rules as may be determined by the Authority. (b) Granting financing facilities from the Fund in accordance with sections 4, 5, 6, and 7 of this Regulation and the rules, terms and prudential standards as may be prescribed by the Authority. (c) Taking all necessary measures and actions to recover the repayment of financing facilities from borrowers who fail to repay. (d) Distributing to the Banks, the profits received from the financing facilities granted from the Fund. (e) Maintaining proper accounts and records of the Fund, including records of contributions made by Banks to the Fund and financing facilities granted from the Fund. Submission of information 9. The Institution operating the Scheme shall submit to the Authority such information, documents, and reports as the Authority may request, in such form, with such detail, and at such time as may be specified by the Authority. Financial statements and auditing 10. (a) The Institution operating the Scheme shall prepare the financial statements of the Fund for each calendar year and shall cause an audit of those statements to be conducted by an external auditor who is qualified and experienced in the audit of funds, after the end of that year.

6 (b) The financial statements of the Fund shall be prepared in accordance with International Financial Reporting Standard. (c) The annual audited financial statements and audit report of the Fund for each calendar year shall be submitted to all Banks and the Authority within 4 (four) months after the end of that year. CHAPTER FOUR OTHER MATTERS Incentives for the Banks and the Institution operating the Scheme 11. Incentives shall be provided to the Banks and the Institution operating the Scheme as may be determined by the Authority. Measures for non￾compliance 12. The Authority may impose a fine, as specified in section 40 (b) of the Maldives Monetary Authority Act, on any Bank or the Institution operating the Scheme that fails to comply with any provision of this Regulation or with any instruction issued by the Authority. Definitions 13. Unless otherwise specified in this Regulation, the following terms or words shall have the meanings assigned to them below. (a) “Bank” means any person licensed under Law No.: 24/2010 (Maldives Banking Act). (b) “Inclusive National Affordable Housing Scheme” or “Scheme” means the scheme specified in section 2 of this Regulation. (c) “Fund for Inclusive National Affordable Housing Scheme” or “Fund” means the fund established under section 3 of this Regulation. (d) “Authority” means the Maldives Monetary Authority established under Law No.: 6/81 (Maldives Monetary Authority Act 1981).

7 (e) “Maldives Monetary Authority Act” means the Law No.: 6/81 (Maldives Monetary Authority Act 1981). (f) “Institution operating the Scheme” means the institution designated by the Authority under section 2 (d) of this Regulation. Entry into force 14. This Regulation shall come into force, on the date this Regulation is published in the Gazette of the Maldivian Government.