06.28.10

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.

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