President Mohamed Muizzu has established the Development Bank of Maldives Limited (DBM).

According to the President’s Office, the President established the entity, as a 100 percent state-owned enterprise (SOE), under the powers conferred to him by Article 15 of the Companies Act (Act No. 7/2023).

The company was formed in line with administration policies to fund infrastructure projects, invest in sustainable economic and social development, address difficulties associated with financing public service investment programme (PSIP) projects through syndicated financing, and to foster a greater interest in maintaining foreign exchange within the nation’s banking system, the President’s Office said in a media release.

Economic Minister Mohamed Saeed said on Tuesday that the administration aims to launch the bank in July.

“Decree by HEP @MMuizzu [Mohamed Muizzu] on Dev[elopment] Bank of Maldives Ltd is a historical milestone for the realisation of HE’s [His Excellency’s] vision as this marks the cornerstone of Dev banking in the 🇲🇻[Maldives]. DBM will become a towering financial institution that would revolutionise the economy,” Saeed said in a post to social media.

The development bank was created as the existing banking system does not have sufficient capacity to bring about the development that the people desire, administration sources said, adding that the establishment of the bank will facilitate loans and funds for development.