Seychelles government to increase shares in PTA Bank |21 June 2014

Seychelles has signed an agreement with the Preferential Trade Area (PTA) Bank with the intention of increasing its shares in the bank.

The signing took place at the Savoy Resort and Spa at Beau Vallon between the principal secretary for Finance Patrick Payet, the president of the PTA Bank Adamassu Tadesse, and the corporate secretary and director of legal service of the PTA Bank Premchand Mungar.

The Seychelles government owns 0.5% shares in the PTA Bank and with the agreement it will have until 2018 to pay the US $4 million worth of shares (equivalent to 1.8 % shares) which will make a total of 2.3% shares for Seychelles.

“With the gradual increase of shares that we are having it will help us have a bigger voice or a bigger recommendation when our projects that we propose go before the PTA board. And we will also benefit in terms of dividend payouts,” Mr Payet said.

During the same event the Development Bank of Seychelles (DBS) signed a memorandum of understanding (MoU) with the PTA Bank to promote mutual understanding, expand cooperation by enhancing opportunities for business development.

The signing was done by the chief executive of DBS Annie Vidot and Mr Tadesse.

“I firmly believe that the signing of the MoU will further strengthen the mutual relationship that DBS has with the PTA Bank.  The two banks have, on numerous occasions in the past, talked about such arrangement but nothing has been formalised until now.  Staff of DBS can henceforth benefit from this top-end development finance institution in terms of capacity building and sharing of work experiences.  The collaboration should also be hailed by the local business community, especially promoters of big investment projects that require financing beyond the capacity of DBS. Through this MoU, co-financing cooperation will be possible between the two banks; and as the local partner of PTA Bank, DBS will be able to play a pivotal role in linking local businesses to regional capital markets,” Mrs Vidot said.

Mr Tadesse remarked that PTA Bank has done a considerable amount of work in Seychelles but is looking forward for much more.  

“The success of PTA Bank is largely due to its partnerships which extend beyond Africa and this includes private and public partnerships. Only institutions like the PTA Bank can bring the Japanese Financial Institutions and the People’s Bank of China together,” he said.