The Minister has urged banks to be more flexible, minimize the requirements for providing support to their clients, calling for more simplified processes, which appropriately considers the current uncertainty introduced by the Middle East tensions.

As part of Government’s efforts to assist the business community to cushion the impact of the ongoing Middle East conflict on the local economy, the Ministry of Finance, Economic Planning, Trade & Investment and the Central Bank of Seychelles held a meeting with members of the Seychelles Bankers Association this week. 

The meeting, held on 20^th May, was chaired by Finance Minister Pierre Laporte via video link from abroad.  First Deputy Governor, Brian Commettant represented the Central Bank.  

The aim of the meeting was to take stock of banks’ support to business and to discuss challenges that businesses continue to face in recruiting support from banks with a view to speeding up assistance. 

The Minister reiterated the need for banks to remain supportive of the business community through these times of conflict.  He stressed the need to support, in particular, the retail, wholesale and broader tourism sector as those have been particularly impacted by the conflict.  For the tourism sector, the Minister directed banks to adopt the same business categorisation as what is being applied by public bodies like the Seychelles Revenue Commission and the Seychelles Pension Fund. 

The banking sector engaged constructively on proposals of the Minister, and confirmed that they continue to work closely with their customers in need of assistance.  On a case-by-case basis, banks have provided moratoriums, overdrafts or other credit restructuring arrangements where appropriate, supporting just under 100 businesses and individuals for a cumulative sum of approximately R145 million. 

The Central Bank confirmed that it continues to monitor the situation and receives weekly updates from the banking sector regarding support measures being extended to impacted customers.