HDC Begins Reporting Rent Defaulters to MMA Credit System

News

The Housing Development Corporation (HDC) has started sharing customer credit data, including rent payment information, with the Maldives Monetary Authority’s (MMA) Credit Information System, a move aimed at improving financial discipline and reducing loan default risks.

The integration, which came into effect in March 2025, ensures that tenants and customers with unpaid rents to HDC will now have their credit status recorded in the centralised reporting system managed by the MMA.

This means banks and lenders can access rent default data when processing new loans, restructuring existing facilities, or granting other financial services. The initiative is expected to promote greater transparency and accountability in the credit market.

MVR 894 Million in Unpaid Rent

According to HDC, total outstanding rent as of June 2025 stands at MVR 894 million.

1. Hiyaa Project (Hulhumalé): MVR 628 million (≈70%)
2. Hulhumalé Phase 1 Units: MVR 230 million
3. Vinares Flats: MVR 37 million

Of the 8,511 residential units in Hulhumalé, only 3,219 tenants are making regular payments, while 5,099 units (≈60%) are in default. This marks a significant rise from 2022, when default rates ranged between 30–40%.

Impact on Credit Access

With the new reporting system in place, rent defaulters may face restrictions in obtaining new credit, renewing loans, or restructuring existing agreements. The change is expected to strengthen repayment accountability and improve financial discipline within state housing projects.

HDC says the integration also aligns with broader efforts to enhance operational efficiency, service delivery, and transparency in the housing sector.