DTIS, Volume I - Enhanced Integrated Framework (EIF)

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show increasing preference for neighbouring countries such as India, Sri Lanka and the Seychelles. FISHERMEN’S ASSOCIATION OF MALDIVES (FAM) The FAM operates on a voluntary basis, funded by its members. Although its membership is low relative to the number of operators in the industry, it includes fishermen, fish traders, processors, and scientists. A current challenge is to increase the membership in each category. MALDIVES ASSOCIATION OF CONSTRUCTION INDUSTRY (MACI) This is a somewhat shadowy body and its membership and activities are unclear. L. JOINT PUBLIC-PRIVATE SECTOR FORUM The main joint public-private sector forum is a National WTO Committee, which was established in 2002 at the time of the WTO Trade Policy Review for the purpose of facilitating the review. This committee is made up of 25 members from a range of government departments and the private sector, represented by MNCCI and MATI. Dominated by government representatives, the Committee had not met since the TPR was undertaken until very recently when the <strong>Integrated</strong> <strong>Framework</strong> was launched. The Committee has now been transformed into the National Steering Committee for the IF. It is not yet clear how the Committee would support and drive IF implementation. M. THE FINANCIAL SECTOR During the last decade the financial sector has grown considerably. However, it is still limited to providing basic commercial banking services. Investment banking and venture capital funds are not among these services and the appropriate legal framework does not exist. Indeed, the IMF has identified significant gaps in the legal framework within which the financial sector operates. Currently operating in the Maldives are five commercial banks, a government supported credit fund that operates in the Atolls – the Atoll Development Fund, one leasing company, one main insurance group and several offshore insurance companies operating in the Maldives. Each institution has developed its market niche reflecting their respective strengths. 59
Overall, it is estimated that the commercially most profitable sector, tourism, attracts a 58 per cent share of the market for banking services. This includes small-scale investment activities requiring collateral. However, the lion’s share of tourism sector banking activities according to the bankers interviewed is for working capital transactions such as payment of salaries, services including airport transportation of arriving and departing tourists, import of food items and other merchandise, utilities and government charges (bed tax, land lease). Most investment capital for tourism is sourced internationally where interest rates are lower and collateral requirement more flexible. The trading, fishery, and other sectors exhibit a similar pattern with banking needs related to working capital transactions. It is also important to recognise that banking and credit, and other types of financial market transactions are relatively new phenomena. The surge in lending was initiated when the interest level was brought down from 18 to 24 per cent to 8 to 12 per cent in 1998. There were and still are large disparities between Male’ and the atolls in terms of access to banking services. MALDIVES MONETARY AUTHORITY (MMA) The MMA acts as the central bank in the Maldives and as such is in charge of the banking and financial sector, though not with overall responsibility for monetary policy. The legislation to make the MMA a proper central bank was on the agenda of parliament during 2005. The MMA currently sets the rates for the reserves required for commercial banks to retain at 30 per cent of paid up capital and 15 per cent for the Atoll Development Fund. COMMERCIAL BANKS In the Maldives, banking is the only sector that is required to pay corporation tax, currently set at 25 per cent of profits. The five commercial banks are as follows. • Bank of Maldives Limited (BML) is also known as the “local” bank. It is seventy-five per cent government owned with an estimated 20 per cent market share of commercial bank services. It has over 113,000 customers and is the only bank with a network that extends to the atolls. It has as many as twelve local branches, as well as “dhoni floating banks” and (up-coming) Automatic Teller Machines (ATM) on the atolls. It is the principle means through which the government provides financing for the Atoll Development Funds. BML has also been responsible for the disbursement of donor funds related to Tsunami relief. 60
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FINAL R E P O R T Volume 1 MALDIVES
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GSP HACCP HDFC HDI HIES HH HRD HS I
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TRIPS TRTA TSA TTMP UAE UK UNCTAD U
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CHAPTER 6: CUSTOMS SERVICES AND TRA
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major stakeholders as the basis of
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C. ECONOMIC TRENDS Buoyant GDP grow
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WTO members (through the Committee
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The recommendations cover these iss
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Requirements Action no. Action reco
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government, and lawmakers are elect
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. 4
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to Sri Lanka. However, by 2004 the
Page 31 and 32: This relatively high proportion of
Page 33 and 34: On an annual basis, total NFA of th
Page 35 and 36: elow provides data on the public in
Page 37 and 38: According to the estimates prepared
Page 39 and 40: Table 2.8: Damage to agricultural f
Page 41 and 42: II. Imports - Merchandise There has
Page 43 and 44: the relatively high rate of unemplo
Page 45 and 46: A. DESTINATION OF MERCHANDISE EXPOR
Page 47 and 48: Penetration of international market
Page 49 and 50: Overall, the importance of foreign
Page 51 and 52: on goods deemed luxury goods (e.g.
Page 53 and 54: the Japan and USA markets. 11 Fish
Page 55 and 56: The Modalities provide that the res
Page 57 and 58: emoved. However, in order to provid
Page 59 and 60: EBA. Appropriate transition arrange
Page 61 and 62: Several provisions such as Article
Page 63 and 64: CHAPTER 4 POVERTY REDUCTION AND HUM
Page 65 and 66: Table 4.2: Poverty Gap Ratios per R
Page 67 and 68: produced locally and are readily av
Page 69 and 70: commerce, information and communica
Page 71 and 72: Table 4.3: Fishery Sector employmen
Page 73 and 74: This also requires policies that ta
Page 75 and 76: with routine functions of administe
Page 77 and 78: Applying for a license to invest in
Page 79 and 80: E. MINISTRY OF FISHERIES, AGRICULTU
Page 81: K. PRIVATE SECTOR STAKEHOLDERS Priv
Page 85 and 86: The cash is held and disbursed by t
Page 87 and 88: difficult to reach given the except
Page 89 and 90: system of micro-credit intermediari
Page 91 and 92: F. LAND, RAW MATERIALS AND SUPPLIES
Page 93 and 94: B. LABOUR MARKET REFORM About 44 pe
Page 95 and 96: Appendix The mixed record of the Ma
Page 97 and 98: legislation incorporates the initia
Page 99 and 100: CHAPTER 6 CUSTOMS SERVICES AND TRAN
Page 101 and 102: Maldives Port Authority • Respons
Page 103 and 104: the correct amount of customs duty
Page 105 and 106: suspense procedures, thus eliminati
Page 107 and 108: A new domestic terminal at MIA will
Page 109 and 110: There is need to clarify MAC’s na
Page 111 and 112: Changes in the role and structure o
Page 113 and 114: Significant improvements have been
Page 115 and 116: CHAPTER 7 THE TOURISM SECTOR Chapte
Page 117 and 118: British market in 2001. In 2004, be
Page 119 and 120: Similarly, considerable demand was
Page 121 and 122: for imports of support infrastructu
Page 123 and 124: government revenues from the supply
Page 125 and 126: number of trainees that have been t
Page 127 and 128: established as a quality tourism de
Page 129 and 130: Maldives' unspoiled marine environm
Page 131 and 132: The Faculty works very closely with
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TOURISM ACT A key objective of the
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HRD studies and conduct of necessar
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D. ESTABLISH AN ENABLING BUSINESS E
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Main Recommendation No. 5: review a
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Main Recommendation No. 6: Scale-up
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CHAPTER 8 FISHERY SECTOR Chapter Pl
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processing under-performing more th
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per cent - see Table 8.4. The secto
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In the light of these market trends
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documentation, and administration.
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monitoring and evaluation dates fro
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and catering industry chefs demand
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It is expected that the trial fishe
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• Can seaming and retorting; •
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DTIS, Volume I - Enhanced Integrated Framework (EIF)

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