On Tuesday, the Cabinet discussed difficulties faced by businesses in getting letters of credit from local banks.

The Cabinet noted that unavailability of LCs could have negative impacts on trade, increase prices of commodities, and create other problems.

Minister of Finance and Treasury, Mr Ali Hashim, said his ministry had met with banks in Male and the Maldives Monetary Authority to discuss the issue.

The reason why banks faced difficulties in issuing LCs was because of prudential regulations being implemented by the banks, Minister Hashim added.

Mr Hashim said the MMA was trying to address the issue by giving a grace period for implementing the regulations.

At today’s meeting, held at the President’s Office, the Cabinet decided to streamline privatisation and corporatisation policies into a one policy document entitled “Maldives Private Sector Participation Policy”.

The government consulted international financial institutions to in incorporating Maldives Private Sector Participation Policy.