A Joint Financing Facility (JFF) has been introduced specifically for micro, small, and medium enterprises to facilitate the implementation of projects related to the 'Blue Economy' concept.
According to the Capital Market Development Authority (CMDA), this facility, introduced with the assistance of the UK government, is a resource launched jointly by the United Nations Development Programme (UNDP) and the Authority. CMDA also stated that a framework for providing financing through this facility has now been introduced.
This framework, introduced under the name 'Blue Economy Financing Facility', is designed to provide a solution to the long-standing challenges in acquiring capital for 'value-added and sustainability-oriented' businesses within fisheries, tourism, and marine businesses and services. In this regard, CMDA stated that this facility will pave the way for providing funds at affordable rates by covering a specified amount of the expenses of such companies through banks, principal advisors, and other financial service providers.
CMDA described the introduction of the JFF as an important step towards expanding the role of the capital market in building a strong financial architecture in the Maldives, as well as something that will help transition to a 'blue and inclusive' economy through sustainable investments by utilizing the avenues facilitated by banking and the capital market.
