Judiciary to fast-track cases involving unpaid loans
On the government’s request, the Chief Justice Abdulla Saeed has agreed to expedite judicial processes in cases involving unpaid loans so that a final judgement could be enforced in six months.
06 Aug 2015, 9:00 AM
The Supreme Court has decided to fast-track the legal process for cases involving unpaid loans and resolve disputes within six months, President Abdulla Yameen revealed today.
Speaking at a groundbreaking ceremony this morning for a tertiary hospital to be built in Hulhumalé, President Yameen said numerous cases involving unpaid loans provided by “financial intermediaries” such as banks, insurance companies, and leasing companies remain stalled at court for long periods, resulting in a credit crunch or reduced lending to businesses.
“Money in the bank will be needed by investors and corporate leaders. If loans issued by banks are not repaid there will be difficulties in issuing further loans,” he said.
As a result of protracted legal processes, he added, banks will also find “corporate inter-bank lending” difficult due to non-performing loans or bad debt.
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