Private Sector Relief Scheme open for application |19 May 2020

The Private Sector Relief Scheme announced by the Central Bank of Seychelles (CBS) earlier in March, is open for application as of yesterday, Monday May 18, 2020.

The scheme, funded by a credit line facility of R500 million, has been set up to assist micro, small and medium enterprises (MSMEs) with an annual turnover of up to R25 million that are facing revenue constraints due to COVID-19.

Absa Bank (Seychelles) Ltd, Mauritius Commercial Bank (Seychelles) Ltd, Bank of Baroda, Nouvobanq, Seychelles Commercial Bank, Al Salam Bank Seychelles Ltd, Bank of Ceylon and Development Bank of Seychelles (DBS) have already signed the ‘Private Sector Relief Credit Line Facility Agreement’ to administer the scheme.

Eligible businesses, including self-employed individuals falling into the MSME category can contact their respective participating institution to obtain application details, including the required documents.

Funds can be borrowed in the form of loans or overdraft facilities to cover critical expenditures including rent, utilities, salaries, taxes and goods and services contracts for a period of 6 months. Credit facilities under this scheme carry a fixed interest rate of 1.5% per year as well as a 6-month moratorium, where borrowers will have the option of not repaying both the principal and interest amount during that period. The maximum repayment period for loans is 3 years.

The activation of the scheme follows the finalisation of the enabling legal framework and signing of the Agreement by the stakeholders sharing the risks of the credit facilities – notably CBS, government and the participating credit-granting institutions. The government is providing a guarantee of 70 percent of the total funds disbursed under this scheme.

Eligible MSMEs have a period of 6 months as of yesterday (Monday May 18) to apply for assistance under the Private Sector Relief Scheme. The CBS will be closely monitoring the administration of the scheme by the credit-granting institutions. The CBS will also be monitoring developments related to COVID-19 and will pronounce itself should the need arise for any changes to the scheme.

More details on the scheme can also be found in a Frequently Asked Questions guide on the Response to COVID-19 page on the CBS website: https://www.cbs.sc/COVID-19/covid19.html

Press release from the Central Bank of Seychelles