CBS board approves revisions to the private sector relief schemes |18 March 2021
The Central Bank of Seychelles (CBS) is extending the access period to the Private Sector (MSMEs) Relief Scheme and the Private Sector (Large Enterprises) Relief Scheme until the end of December 2021.
This is one of several revisions to the two schemes approved by the CBS board at its meeting held on Monday March 15, 2021.
The moratorium period currently set at 12 months is also being extended to a maximum of 18 months. Existing approved applicants will automatically receive the additional six months moratorium. A 12-month moratorium will be given to new applications at the outset; the additional six months will be granted, if required, after further review by the Development Bank of Seychelles (DBS) or the participating bank that received the application.
Businesses may opt out of the moratorium or request a shorter period, as required.
The current tenor of three years is to be extended to eight years as a maximum. This particular policy decision will be submitted to the cabinet of ministers for approval and subsequently tabled before the National Assembly for consideration, as it requires an amendment of section 29A of the CBS Act. Accordingly, the current tenor of three years remains in effect.
With regard to critical expenditures, the scope is being expanded to include expenses associated with reskilling and training programmes as well as debt servicing. Debt servicing will be primarily for the tourism sector and limited to cover interest payments only, for a maximum period of one year, and is only applicable to credit facilities that a business has with its main banker.
The board decision also provides for the inclusion of a debt restructuring component aimed at limiting the number of default loans, whereby, through consultation between the business and its main banker, a business can restructure its loan after the end of the moratorium period, if the initially agreed repayment terms are not feasible. All of the revisions will be reflected in
the agreement signed by the CBS, participating institutions and the government.
In addition to the proposals approved by the CBS board, it is to be noted that the banking community and private sector have discussed and agreed to maintain the 5 to 10 working days processing timeframe of applications for financing under the relief schemes subject to the submission of complete application packs by applicants. In that regard, the Seychelles Chamber of Commerce and Industry (SCCI) has also committed to providing administrative support, in collaboration with the Enterprise Seychelles Agency (Esa), if businesses require assistance
with their application packs. Businesses are also being encouraged to ensure that they submit all required documentation, which will assist in the timely processing of their application.
The extension of the two schemes aims to assist businesses adversely impacted by the pandemic in obtaining financing under more favourable conditions to meet their operational expenses and implement other measures to secure income in light of the persistent impact of the Covid-19 pandemic. This follows discussions CBS had with the banking community, private sector and government to assess the implementation of the schemes, address identified challenges and put forth new proposals.
As already announced, CBS will continue to have such consultations with the different stakeholders on a regular basis, to assist the informed formulation of its policy decisions.
CBS will also continue to monitor the economic situation and adjust its policy measures should the need arise to maintain price and overall financial stability.
Press release from the CBS