Banks to work and submit a proposal for the sum of SR250 million within fourteen days for housing projects in the country
February 08, 2018
Following the meeting organized by the Ministry of Finance, Trade and Economic Planning, there was a proposal for banks to come up with a sum of SR 250 million amongst themselves to assist in the completion of housing projects by February 2019. This proposal will include the contributions of all banks in the country and they are expected to provide a feed back in two weeks’ time.
This proposal was put forth by the Minister for Finance, Trade and Economic Planning, Dr. Peter Larose to all bank heads attending the meeting at Liberty House. Minister Larose pointed out that banks should contribute more towards the development of the country. Dr. Larose spoke of the need for banks to readjust their portfolios to cater for housing and syndicated fund facility. He said that banks could consider financing productive sectors, such as fisheries and agriculture, small manufactures, and Small Medium Enterprises, SMEs involved in production. Dr. Larose said that the development of housing is a critical area that requires attention.
On his part, the Minister for Habitat, Infrastructure and land Transport, Charles Bastienne, said that the money will complement the existing funds available to complete housing projects by February 2019. He said that they are already discussing and negotiating with banks on self-financing schemes and that some banks are already engaged in it.
Mr. Johan Van Schalkwyk, the General Manager from Barclays stated that we have to work together if we want to move forward, and said that Barclays has already ventured in housing portfolios, so does the other banks. Some other bankers’ representatives pointed out that there is also a need to work with other stakeholders on the cost of building materials as well as the housing subsidy scheme.
Also discussed in the meeting is the Small Medium Enterprise, SME Scheme. It was pointed out that there is a need to build the capacity of entrepreneur and sustain it as well. Ms. Annie Vidot, the Managing Director of the Seychelles Commercial Bank noted that there should be more diversifications in SMEs.
To date, there are many applications for taxi operators and car hires.Minister Larose reiterated that banks must take care of their own interest, but at the same time include agriculture and fisheries and other productive areas of the economy as well.