09.16.06

Privatisation of Nouvobanq

Posted in Seychelles banking at 7:18 pm by Robert Klien

The Ministry of Finance has announced that the privatisation of Nouvobanq, located on the ground floor of Victoria House bank, is under discussion.

Nouvobanq is the trade name of Seychelles International Mercantile Banking Corporation (SIMBC). Nouvobanq was established in 1991 as the only locally incorporated commercial bank in the Seychelles. In 1999, the International Finance Corporation (IFC) provided a loan of USD 10 million to the bank to strengthen its balance sheet and make it more attractive to private investors.

What the privatisation of Nouvobanq will give people – it will allow the public to own shares in the new banking entity.

In June, President James Michel promised that Nouvobanq would be privatised and that 30% of government shares in the Nouvobanq would be sold to the general public. This was done after this year’s government’s success in turning State Assurance Corporation of Seychelles (Sacos) into a company owned by more than 9 000 shareholders. This was just the 1st step that now will be used as a successful model for the privatisation of Nouvobanq as well as other privatisations. The President expressed the government’s wish to turn the Seychelles into a nation of entrepreneurs, shareholders and investors. In accordance with the expectations of the Ministry of Finance, the privatisation of Nouvobanq will become one more popular public ownership exercise.

The details regarding the terms of privatisation of Nouvobanq and the date of the beginning of share sale will be announced later.

According to the President Michel, the next step of privatisation policy could be the Seychelles Savings Bank.

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