Parliament’s Speaker and former President of Maldives Mohamed Nasheed has said that the country’s housing issues remain unresolved due to issues with the Maldives’ justice system.
Speaking at an event held in Hulhumale on Monday to launch a “Glamour Residence” private residence, Nasheed stated that business opportunities need to be developed, and ways to arrange company mortgages need to be facilitated.
Nasheed emphasized the need for long-term bank loans and said arrangements must be made in such a way that loans can be arranged after the mortgage has been acquired. In the event that the loans are not repaid, it is necessary to facilitate the selling of mortgaged property under a simple process, he said.
“If the person taking out the loan does not repay the loan, banks must be able to sell off the mortgaged properties at the earliest. If the properties remain unsold, the amount available for borrowing from the bank will decline significantly. There are two reasons for this: firstly, it increases the bank’s risk, which increases the amount the bank has to contribute. Secondly, if the loan remains unpaid, the bank will not have funds”, said Nasheed.
Nasheed said the country’s justice system is the biggest obstacle among companies building homes and selling them with the support of the bank. Nasheed said several court cases on dormant accounts remain unresolved and unmoving at the courts due to process defects, which in turn makes issuing mortgages difficult for banks.
“This makes acquiring housing difficult. Due to this, dignified life is not easily attained – all because issues with the justice system”, Nasheed said.
Nasheed said the Parliament’s work is to enact legislation in order to pave the way for businesses to thrive and to reform the judiciary.