CBS sets a limit of R500 million for government advances in 2021 | 20 January 2021
The Board of the Central Bank of Seychelles (CBS) has set the limit on short-term advances that the institution can provide to the government during the year 2021 at R500 million, at an interest rate of zero per cent.
The decision was taken by the CBS board in December, in line with Section 40A (1) of the CBS Act 2004, as amended.
The exercise, which makes provision for the terms of advances that CBS extends to government in Seychelles rupees, in the event of a temporary shortfall in revenue, is done annually and published in the Official Gazette as per Section 40(2) of the CBS Act.
However, the requirement for publication in the Official Gazette is not applicable for instances where CBS grants temporary advances to the government in the event of force majeure, such as the Covid-19 pandemic, as per Section 40A (1), of the amended Act. CBS’ decision to still publicise the limit is in line with its commitment to transparency.
Press release from the CBS