Central Bank of Seychelles (Amendment) Bill, 2021 is approved
June 22, 2021
The National Assembly has approved the Central Bank of Seychelles (Amendment) Bill, 2021.
The bill was presented by the Minister for Finance, Economic Planning and Trade, Naadir Hassan.
The amendments were to sections 29A and 41 of the Central Bank of Seychelles Act, 2004 (Cap 26).
The amendments to section 29A are to extend the period of loans, advances and rediscount made by the Central Bank to Financial Institutions from 3 years to 8 Years and to clear the ambiguities that exist in section 41.
Minister Hassan explained because of the impact of the COVID 19 pandemic businesses have been hit hard and in a bid to support businesses, Central bank of Seychelles issued two schemes, in which commercial banks could assist businesses.
- Businesses earning revenues less than R25 million have access to a scheme worth R500 million. The fixed rate of interest is 1.5% with the option for a grace period of 6 months on the repayment on the principal loan and interest.
- Businesses earning above R25 million have access to a scheme worth R750 million, with an interest at a fixed rate of 4.5% with repayment grace period of 12 months on the principal loan and interest.
The repayment period was 3 years.
Considering the continuous negative impact of the pandemic COVID 19 on businesses, the Board of CBS approved for an extension of its repayment period, thus the amendment to section 29A, which will allow CBS in a case of ‘Force Majeur’ to extend the repayment period of its loan from 3 to 8 years.
29 MNAs voted in favour of the bill. There were no abstention and no vote against.