Seychelles’ loaning banks must now consult CIS

Posted in Seychelles banking, Seychelles legislation at 12:45 pm by Robert Klien

Seychelles’ financial institutions must consult the Credit Information System (CIS) maintained by the Central Bank of Seychelles (SBS) with effect from July 1, 2012 before giving loans.

Regulations on the CIS were issued in March 2012 but became obligatory only in July this year and require institutions which give loans to consult the system before they approve loans or renew any credit facility. Loan-giving institutions include commercial banks, the Housing Finance Company, the Development Bank of Seychelles and the Seychelles Credit Union.

CBS governor Caroline Abel said that the purpose of the CIS is to enable the institutions to assess prospective clients by giving them information on the repayment history and the level of debt of clients across the financial system.

It should be noted that previously banks could not share information as they were prevented from doing so by law. Now they may consult the system but maintain all the information they get about clients confidential.

Ms Abel said: “Having access to a customer’s credit history may allow the process of switching banks for customers, thus promoting competition in the banking sector”. She added that clients are free to shop around and settle for the bank that offers the lowest interest on loans.


Seychelles’ Commitment to access WTO membership welcomed

Posted in Bilateral Treaties, Business and Economy, Diplomatic missions, International Organisations, International relations at 8:48 am by Robert Klien

The Seychelles has been praised for undertaking reforms of its legislative and trade regime aimed to achieve membership of the World Trade Organization (WTO).

On July 10, 2012, WTO member states at the 3rd Working Party on the Seychelles’ accession reviewed the state of play in the bilateral market access negotiations and examined legislative developments and its trade regime.

According to the Chief Negotiator for the Seychelles, Charles Morin, significant progress has been made to meet accession requirements. In April and May 2012, revised goods and services offers were presented. Despite the limited human and financial resources, the Seychelles has made remarkable progress. Also, he noted that the jurisdiction has recently established a mission in Geneva. It was emphasized that the Seychelles has a unique position as one of the smallest economies in the world and its economy is prone to external shocks.

Representatives from the EU, the US, China, Canada, Australia, Lesotho (on behalf of the African Group), Oman, Brazil, Mauritius (on behalf of the African, Caribbean and Pacific Group), India, South Africa, and Barbados expressed their appreciation for the substantive work that Seychelles has undertaken to advance its accession. Some members voiced their support for allowing for more flexibility in the accession of such a small and vulnerable economy as the Seychelles.

The Chairperson of the Working Party, Hilda Ali Al-Hinai (from Oman), said that the examination of all aspects of the Seychelles’ economic and trade regime has been advanced at the meeting. She congratulated the Seychelles for successfully establishing a mission in Geneva as well as praised it for the quantity and quality of the documents it has submitted.

The Seychelles began its accession bid in 1995. It has already signed three bilateral market access agreements with Oman, Mauritius and Canada. In addition, the EU, South Africa, Thailand, and the US have registered progress in the bilateral negotiations with the Seychelles.


Seychelles inflation rises in June

Posted in Seychelles' statistics at 12:12 pm by Robert Klien

According to the official data provided by the National Bureau of Statistics, consumer prices in Seychelles rose 0.2% in June from the previous month, increasing the year-on-year inflation rate to 8.9%.

The National Bureau of Statistics said that fish prices increased by 3.6% from a month earlier, while other food costs rose 1 % and non-food items climbed 0.3%. As to the non-food category, the main increase was recorded in the price of furniture and household equipment, which rose 1.4%, while clothing and footwear saw an increase of 0.7%.