Banks urged to ensure safety of staff and clients amid Covid-19 pandemic |13 February 2021

Governor Abel (Photo: Thomas Meriton)

The Central Bank of Seychelles has called on all banks to diligently abide by Covid-19 precautionary measures to ensure the safety of their staff and clients during this second wave, while ensuring continued services to the public.

Central Bank Governor, Caroline Abel, made note of this during yesterday’s press update where she stressed that banks should continue to ensure access to funds for the public, businesses and the government, and access to credit facilities particularly for businesses.

“Nonetheless we have to acknowledge that the pandemic is impacting banking services. The Central Bank’s services remains largely unaffected even if some of our counter operations that we have suspended such as exchange of old money notes but there are other services that are more or less unaffected.

“Commercial banks that are open on a daily basis have to ensure that they are keeping up with hygiene standards because they have to carry on with their services. Unfortunately, there are some banks that have been severely impacted especially those that are on the smaller side and have a smaller workforce,” said Governor Abel.

The Bank of Ceylon for instance has been temporarily closed since Wednesday February 3 after one of its employees tested positive for Covid-19.

A week later, on February 11, the Credit Union’s La Digue branch also had to close due to a positive case among its staff.

All other banks remain open and operational, but are revising their methods of working such as setting up teams that work on rotation so that the banks can continue operations even if an employee tests positive for the coronavirus.

Nonetheless, CBS is encouraging members of the public to stay at home, as per health recommendations, and make use of bank technologies such as banking apps, internet banking and make use of ATM machines so as to avoid long queues and crowding at banks.

In regards to the exchange rate, Governor Abel noted a slight improvement on supply versus demand for February 2021 which is helping to stabilise exchange rates. At present, the supply of foreign exchange slightly exceeds demand.

Statistics from CBS indicates that the country’s gross international reserves stand at US $536 million and net international reserves at US $397 million.

The treasury bonds put in place to raise money for the government to fund its 2021 budget has racked up a total of 538 applications worth R720 million. The government’s budget for 2021 has been set at around R11 billion, of which a significant portion needs to be raised since the government does not have the money on hand.

There are three treasury bonds in play: R300 million for 3 years at an annual interest rate of 3%, R700 million for 5 years with interest rate of 8% and R500 million for 7 years at an interest rate of 10%.

The majority of applications come from individuals at a total value of R334.6 million, nine applications worth R320 million have come from Commercial Banks and Seychelles Credit Union, other financial institutions have placed three applications worth R30 million, nine applications from private companies that total R13.4 million and another nine from other investors at a value of R21.6 million.

As for the credit facilities for businesses in the country, Governor Abel noted these need to undergo quarterly internal assessment by the CBS board, of which the last review was conducted in November last year.

“We expect to return before the board in March this year. Before we do this however, we are in discussions with the private sector and they have put forward recommendations which we will bring to the board in our next meeting,” said Governor Abel.

Over R168 million has been dispensed so far by commercial banks under CBS’ credit facilities.