Villa Group has paid up US $5 Million to Bank of Maldives Ltd (BML) on Monday, according to a Senior Director of the Group.
The US $ 5 Million was part of a US $ 10 million LC facility sanctioned by Bank of Maldives earlier. Following a request from Villa Group, the US $ 10 million LC facility was divided in to US $ 5 Million LC facility and US $ 5 Million overdraft facility by the bank’s Credit Board. However, even though the arrangement was approved by the bank’s credit board it was not approved by the bank’s Board of Directors appointed by the previous government and despite the request by Villa Group to delay payment of the overdraft till end of April; the bank’s new Board appointed by the incumbent government called for payments by 10 February.
Senior Director of Villa Group who wished not be named said under the circumstances , the payment of US $ 5 million was made on the 9 of this month, even though the group had faced considerable difficulties in meeting the deadline. He revealed that the group was under immense financial difficulties due to the global credit crunch and that the group has even suspended most of its projects and even had to restrict payments to customers and salaries to staff.
“We have paid up the amount we were asked to pay, now, we will wait and see what action Bank takes against other customers who default payment, then we will know what this is all about” he said.
When contacted on the matter, BML’s Assistant General Manager Fathimath Manik said it was not the bank’s policy to reveal details of such matters.
Villa Group is facing severe financial difficulties due to the global credit crunch forcing much of its social activities to be suspended. In this regard, Villa Foundation has scaled downed much of its social and charity works.
Many believe that Villa Group is under considerable pressure from the general public to continue its social services to the people, especially from parents and students expecting to go abroad under the Villa Foundation’s scholarship scheme this year.
Villa Foundation is a charitable organization founded in 1999. Its scholarship scheme launched in 2000 supported 20 students and the end of 2008, a total of 520 scholarships had been awarded.
The US $ 5 Million was part of a US $ 10 million LC facility sanctioned by Bank of Maldives earlier. Following a request from Villa Group, the US $ 10 million LC facility was divided in to US $ 5 Million LC facility and US $ 5 Million overdraft facility by the bank’s Credit Board. However, even though the arrangement was approved by the bank’s credit board it was not approved by the bank’s Board of Directors appointed by the previous government and despite the request by Villa Group to delay payment of the overdraft till end of April; the bank’s new Board appointed by the incumbent government called for payments by 10 February.
Senior Director of Villa Group who wished not be named said under the circumstances , the payment of US $ 5 million was made on the 9 of this month, even though the group had faced considerable difficulties in meeting the deadline. He revealed that the group was under immense financial difficulties due to the global credit crunch and that the group has even suspended most of its projects and even had to restrict payments to customers and salaries to staff.
“We have paid up the amount we were asked to pay, now, we will wait and see what action Bank takes against other customers who default payment, then we will know what this is all about” he said.
When contacted on the matter, BML’s Assistant General Manager Fathimath Manik said it was not the bank’s policy to reveal details of such matters.
Villa Group is facing severe financial difficulties due to the global credit crunch forcing much of its social activities to be suspended. In this regard, Villa Foundation has scaled downed much of its social and charity works.
Many believe that Villa Group is under considerable pressure from the general public to continue its social services to the people, especially from parents and students expecting to go abroad under the Villa Foundation’s scholarship scheme this year.
Villa Foundation is a charitable organization founded in 1999. Its scholarship scheme launched in 2000 supported 20 students and the end of 2008, a total of 520 scholarships had been awarded.
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