Seychelles gets US $10m line of credit from India |20 December 2012

The funds raised through this new facility will be used by the DBS to finance projects in various development sectors in line with its mandate.

One of the key conditions of this credit line is that 75% of the funds should be used to import products or services from India. 

The loan carries an interest rate of 1.75%, is repayable over 20 years, and also has a moratorium on amortisation on five years.

The agreement was signed on Tuesday in New Delhi by T. C. A. Ranganathan, chairman and managing director of the Export-Import Bank of India representing the Indian government, and the Minister for Finance, Trade and Investment Pierre Laporte on behalf of the Seychelles government.

Also present at the signing ceremony were Brian Charlette, director for Public Debt in the Ministry of Finance, Trade and Investment, and Seychelles’ ambassador to India, Waven William.

On the sideline of this signing ceremony, the Seychelles delegation also concluded negotiations with the Indian authorities for the restructuring of the US $8 million loan, also from the Export-Import Bank of India, that was taken in 2006.

The last administrative steps are being completed with a view to signing this restructuring agreement which is now planned for early 2013.

Signing of this agreement will complete the restructuring of Seychelles’ bilateral debt in the context of the Paris Club restructuring exercise which was agreed in Paris in April 2009.