Loan write-off |26 March 2026

Government clarifies eligibility criteria

The Ministry of Finance, Economic Planning, Trade and Investment has clarified the recent public statement made regarding the write-off of certain Small Business Loans held by the Development Bank of Seychelles, stating the measure applies strictly and exclusively to a defined category of non-performing loans that have exceeded the legally prescribed recovery period. 

In such cases, the law prevents any further judicial enforcement, and the write-off reflects an administrative and accounting adjustment rather than a discretionary debt forgiveness scheme, it said in a press release issued yesterday.

The ministry has emphasised that:

• The write-off is not a general loan amnesty or debt relief programme.
• Loans that remain legally enforceable do not qualify under this measure.
• Each case is assessed against specific legal and financial criteria, and not on request or appeal alone.

In light of the above, members of the public are advised that requests for loan write-offs outside these established criteria will not be considered, stated the communique.

The ministry, in collaboration with the Development Bank of Seychelles (DBS), said it is currently engaging on appropriate mechanisms to address outstanding loans in a fair and structured manner. 

Borrowers are encouraged to engage directly with DBS to explore possible arrangements tailored to their circumstances and to negotiate mutually beneficial (“win-win”) repayment solutions. In this regard, all legal pursuits related to loan recovery have been suspended until further notice to ease such engagement.

“The government remains committed to upholding principles of fairness, financial discipline, and responsible economic governance,” concluded the press release.

Press release from the Ministry of Finance, Economic Planning, Trade and Investment