Seychelles Savings Bank cuts interest rates

Posted in Offshore Banking, Seychelles banking, Seychelles government at 2:14 pm by Robert Klien

A further cut in interest rates on various types of loans and advances will be made by the Seychelles Savings Bank. The new rates will come into effect from July 1.

Nevertheless, savers will still benefit from existing rates because there will be no reduction in interest rates on all types of deposits.

As mentioned by President Michel in his National Day speech, the prime lending rates (PLR) on housing loans and commercial loans will be reduced to 6% and 7% respectively.

It is worth noting that this will be the 4th reduction in lending rates during the last 9 months, the 1st taking effect on October 1, 2009, followed by one on December 1, 2009, and the 3rd on March 15, 2010.

According to the bank, during this period the maximum benefit was passed on to borrowers in the commercial sector, which has seen a huge reduction of 10%, from a PLR as high as 17% in September to 7% from July 1.

The bank expects the cut in interest rates to encourage people to borrow money at a more affordable rate, which should result in accelerated economic activity and benefit everybody in the long run.


DBS to issue bonds to boost Seychelles’ economy

Posted in Offshore Banking, Seychelles banking at 3:41 pm by Robert Klien

With a view to raise capital and to accelerate lending, the Development Bank of Seychelles (DBS) has announced its plans to launch 2 bond issues for a total amount of R100 million.

It should be noted that this followed recent President’s and the bank’s board announcements that the government was considering ways of stimulating the economy by means of lowering interest rates.

Lending rates have been already slashed by the Development Bank from 15% to 10% as from April 1. The new bond issue will allow it to cut rates further.

In its press release, the Bank said that the 2 bonds will be issued for a value of R50 million each and will be launched on July 1. The 1st will be a 2-year bond with an interest rate of 5% per annum, while the 2nd will be a 3-year bond at 5.5% per annum. Both bonds will be available from July 1. Both residents and non-residents will be allowed to by the bonds. Issued singly or jointly, they will be transferable through the Central Bank of Seychelles at any time before they mature.


Russia to support anti-piracy in Seychelles

Posted in International relations at 3:41 pm by Robert Klien

It was discussed previously that Russian ambassador Mikhail Kalinin was talking at a reception held to mark Russian National Day.

At the event, Kalinin said that Russia is to support Seychelles’ battle against piracy and that it will send a warship to the region this year. According to him, “Russia contributes actively to the international fight against piracy that severely affects the security and economic situation in Seychelles, which is on the front line of this fight”.

Kalinin noted that Russia has proposed to set up an international judicial body in the region where pirates can be prosecuted, which would easen the burden of the coastal states and ensuring pirates do not escape justice.


New Ministers sworn in before Seychelles’ President

Posted in Seychelles government at 6:56 pm by Robert Klien

On May 16, President Michel asked ministers to go on making sure the government provides services addressing the core needs of the people of Seychelles.

President visited State House during a ceremony at which Jean-Paul Adam was sworn in before him as the new Minister for Foreign Affairs, Peter Sinon as the Minister for Investment, Natural Resources and Industry and Dr Erna Athanasius as the Minister for Health.

Vice-President Joseph Belmont, Designated Minister Danny Faure, speaker of the National Assembly Dr Patrick Herminie, chief justice Frederick Egonda-Ntende, as well as other ministers and chief of defence forces Brigadier Leopold Payet were present at the ceremony.

According to Mr Michel, the jurisdiction has seen major changes in the last 2 years which the people have embraced, making the transformation a success. President said that the ministers will start a new chapter in this “great transformation” in order to continue the policy of getting closer to the people.


Russian investment grows in Seychelles

Posted in Diplomatic missions, International relations, Seychelles government, Tourism industry at 6:48 pm by Robert Klien

On May 15, during a reception held at the Coral Strand Hotel, ambassador of Russia Mikhail Kalinin said that Russian investment in Seychelles is growing rapidly. The reception was held to mark Russia’s National Day.

Mr Kalinin said that Russian investment in Seychelles’ tourism industry now tops USD 250 million. He also added that the government of Russia has approved 2 more hotels to be built by Russian investment companies. He also said that Russian businessmen are investing in the preservation of Seychellois sites of environmental, cultural and historical value.

Mr Kalinin said that there are much more opportunities for mutually beneficial cooperation and they are to be explored. He called on Seychellois businessmen to establish direct links with their Russian counterparts who might offer many interesting projects important for the Seychellois economy.

According to the ambassador, Russian President Dmitry Medvedev and President James Michel regularly communicate and exchange messages on different issues, and Russia and Seychelles hold identical or similar positions on the major international matters.

Mikhail Kalinin said that Seychelles is becoming more and more popular among Russian tourists. Visitors from Russia now hold 4th place among tourists in Seychelles with more than 8 500 arrivals in 2009.

Kalinin welcomed the graduates of the Soviet/Russian institutes present at the ceremony. One of them was Minister for Community Development, Youth, Sports and Culture Vincent Meriton, who read President James Michel’s message. The message said: “Seychelles and the Russian Federation have a long history of cooperation and I would like, on behalf of the government of Seychelles, to express my sincere gratitude and appreciation for all the forms of help provided, particularly in the fields of education, sports, culture and health. We hope that we will be able to benefit from similar offers in the future,” said Mr Michel in his message.


Seychelles creates ministry to fight piracy

Posted in Seychelles government at 1:00 pm by Robert Klien

Agence France-Presse reported that the President of Seychelles James Michel created a new ministry in order to respond to the threat of Somali piracy.

The ministry will be responsible for police and prisons as well as coordinating efforts aimed to combat piracy. This move was essential because piracy expanded into Seychelles waters in 2009.


Seychelles President to visit India

Posted in Diplomatic missions, Seychelles government at 1:00 pm by Robert Klien

The President of Seychelles, James Michel, is planning to undertake a 3-day visit of India from June 1 to June 3, 2010. This will be his 2nd visit to India, the 1st one was in 2005.

The official spokesman of India’s government, Vishnu Prakash, said that as a preparatory to the visit, a number of new initiatives were being considered, which included a school library project, supply of buses,  human resource development, technology development centre in Seychelles for small and medium enterprises. According to him, India has been cooperating closely with Seychelles, assisting them in training, including that of diplomats.

Prakash said: “Close to 10% of the population in Seychelles is of Indian origin. Their currency is called Seychelles Rupee. We are also exploring now possibilities to enhance our synergies. A business delegation from Seychelles is accompanying the President to precisely do so”.