Regulation on Issuing Loans to Employees of the Maldives Monetary Authority

6 July 2017 Regulation Number: 2017/R-50 Regulation on Issuing Loans to Employees of the Maldives Monetary Authority (Unofficial Translation)

2 Maldives Monetary Authority Male’, Maldives Regulation on Issuing Loans to Employees of the Maldives Monetary Authority Introduction and Title 1. (a) This is a Regulation issued pursuant section 8(5), and section 38 of Law No.: 6/81 (Maldives Monetary Authority Act 1981). (b) This Regulation may be cited as the ‘Regulation on Issuing Loans to Employees of the Maldives Monetary Authority’. Objective 2. The objective of this Regulation is to prescribe the main principles which ensures fair and equal treatment when issuing loans to employees of the Maldives Monetary Authority. Purposes for Which Loans May Be Issued 3. (a) Loans may be issued to employees for the following purposes. (1) To purchase a house or flat for residential purpose; (2) To construct a property for residential purpose for the employee or the employee together with the employee’s family, or to renovate the employee’s residence. (3) To obtain higher education of the employee or a child of the employee. (b) Where the Governor deems that based on the timing and circumstances, it is expedient to issue loans to employees of the Authority for purposes other than those stated in subsection (a), employees may be issued loans for such purposes. Loans issued in this regard shall not exceed the aggregate amount of the salary of the employee for 3 (three) months.

3 Number of Loans, and Opening the Opportunity for Loan Application 4. The management of the Authority shall determine the number of loans to be issued each year. An announcement shall also be made at the Authority, in a manner accessible all employees, informing the employees of the opportunity to apply for loans. Loan Application 5. Employees shall apply for loans under this Regulation when the Authority makes the announcement stating that the opportunity to apply for loans is open. Loan applications shall be made by completing the designated form for that purpose, and submitting the form along with the documents and information to be submitted with the form as stated in the announcement. Conditions for Issuing Loans 6. (a) Loans for the purpose of purchasing a house or flat for residential purpose may only be issued to the employees that meet the following conditions. (1) The employee is a permanent employee of the Authority; (2) The employee has served as an employee the Authority for a minimum of 5 (five) years ; (3) The employee has the confirmation of the availability of the house or flat for purchase by the employee; (4) The employee shall not have in the employee’s name, a plot of land, flat or a row house in Male’ which is 600 square feet or more in size; (5) The total monthly salary (total including salary and allowances) of the employee is of such amount that the monthly payments for repayment of the loan for which the employee applies may be deducted from the salary; and (6) The employee has not taken out a loan from the Authority for a purpose stated in section 3(a) of this Regulation.

4 (b) Loans for the purpose of constructing a property for residential purpose for the employee or the employee together with the employee’s family may only be issued where the employee meets the following conditions. (1) The employee is a permanent employee of the Authority; (2) The employee has served as an employee of the Authority for a minimum of 5 (five) years; (3) The land plot, where the property is to be constructed by taking out the loan is registered in the name of the employee applying for the loan, or the employee’s mother, father, wife, husband, or child; and (4) The employee has not taken out a loan from the Authority for a purpose stated in section 3(a) of this Regulation. (c) Loans for the purpose of renovating the employee’s residence, or for the purpose of higher education of the employee or employee’s child may only be issued where the employee meets the following conditions. (1) The employee is a permanent employee of the Authority; (2) The employee has served as an employee of the Authority for a minimum of 5 (five) years; (3) The employee has not taken out a loan from the Authority for a purpose stated in section 3(a) of this Regulation.

5 (d) Loans falling under the ambit of section 3(b) of this Regulation may only be issued to permanent employees of the Authority. (e) The Authority may prescribe other conditions in addition to the conditions provided in subsection (a), (b), (c) and (d) of this section. Where such additional conditions are determined by the Authority, the conditions shall be disclosed to the employees on the announcement made to inform the employees of the opportunity to apply for loans. Selection of the Recipients of Loans 7. (a) The Authority shall determine who will be the recipient of the loan from the employees who applied for a loan under this Regulation, based on the principle of who receives the highest number of points amongst the employees who meet all the conditions. (b) Along with the announcement made by the Authority stating that the opportunity to apply for loans is open, the Authority shall also disclose to the employees the factors which shall be assessed and the manner in which points will be given when determining who shall be the recipient of the loan. Agreement 8. Loans shall only be issued to the employees receiving the loan, under a loan agreement which shall be signed between the Authority and the Employee. The agreement shall include at least the following. (1) Details of loan including the loan amount, period and interest rate; (2) Rights and obligations of both the parties; (3) The manner in which the loan amount is to be disbursed; (4) The manner in which the loan is to be repaid;

6 (5) Action to be taken in case of loan default; (6) Agreed arrangement in the situation where the employee leaves the Authority before the loan repayment is complete; (7) Action to be taken in case of contravention of the agreement. Commencement 9. This Regulation shall commence on the date of its publication in the government gazette. Definitions 10. In this Regulation, unless the context otherwise requires; ‘Authority’ means the Maldives Monetary Authority established under Law No. 6/81 (Maldives Monetary Authority Act 1981). ‘Male’ includes Hulhumale’ and Villingili.

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