The Ministry of Fisheries has decided to reopen the opportunity to apply for the "Murabaha RSW Financing" facility, which is being carried out under the project to install Refrigerated Sea Water (RSW) systems on fishing vessels.
The "Murabaha RSW Financing" facility is a finance facility arranged through the SME Development Finance Corporation (SDFC) to install RSW systems on vessels under the "Support People's Livelihood in Fisheries Sector in Maldives through Sustainable Energy Project", initiated jointly by the Islamic Development Bank (IDB), Lives and Livelihood Fund (LLF), and the Ministry of Fisheries. Under this project, RSW systems are scheduled to be installed on at least 100 dhonis.
The opportunity to finance the installation of RSW systems under the Murabaha principle permitted by Islamic Sharia was first opened by SDFC's Islamic Window from September 22 to November 30 last year. During that period, 39 parties submitted loan forms applying for the facility, and it was decided to grant loans to the 19 parties that met the requirements. SDFC previously stated that the loan processing stages for those parties are ongoing.
The Ministry of Fisheries stated that it has decided to reopen the opportunity to apply for "Murabaha RSW Financing" on the 7th of this month. Under this facility, financing is provided for establishing RSW systems on fishing vessels, purchasing generator sets, and purchasing solar power panel systems.
Under the 'Murabaha RSW' financing, funds up to MVR 2,000,000 are disbursed, with profit calculated at a rate of 6% per annum. The government pays 35 percent of the price of the items taken under this facility. While financing is provided under this facility to be repaid within a maximum of 10 years, a 6-month grace period is arranged.
