06.15.08
Posted in Business and Economy, Financial Services, Seychelles banking at 6:19 pm by Robert Klien
In order to increase investment flexibility, the Central Bank of Seychelles has announced the introduction of a new service.
The new service allows to sell and buy government-issued bonds. Those who hold government bonds will now be able to sell these bonds to the Central Bank of Seychelles before the bonds reach their maturity. This will allow them to access funds that would have been tied up otherwise. Then, the bonds bought by the Central Bank of Seychelles will be sold to people.
According to Central Bank governor Francis Chang Leng, before this new initiative has been launched people holding bonds faced the difficult prospect of trying to find a buyer if they wished to sell the bonds. This difficulty even increased if they wanted to sell large amounts of bonds. “The introduction of the Central Bank secondary market for bonds offers a fast, efficient and guaranteed market for people wishing to sell bonds and an easy access point for people who wish to use an investment in government bonds as an alternative to saving their money in the bank.â€
Bond holders who intend to use the new service will have to visit the Central Bank of Seychelles, where they will be able to cash either in the full value of their bonds or a percentage of them.
The Central Bank will charge an administrative fee of 0.25% on the face value of the bonds in order to finance the new service.
As a secondary market will be introduced, bond holders will be allowed to exchange their bonds for currency, which will increase their financial liquidity. Nevertheless, the overall level of liquidity will not change because the bonds will stay in circulation.
Central Bank governor Francis Chang Leng hopes that the introduction of the secondary market for bonds will increase people’s familiarity with trading in bonds and other investments, and with “providing an additional interest-earning opportunity for savers looking for the best return on their moneyâ€.
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06.09.08
Posted in Business and Economy at 11:48 am by Robert Klien
The global rise in food prices has become an alarm for consumers in Seychelles. This is what the opposition of Seychelles has claimed. However, the speaker of one of Africa’s richest nations, Patrick Herminie, has rejected an opposition call to organize an emergency session in order to address this problem.
The opposition call was the result of a recent announcement by the Seychellois government that the price of rice, the Seychellois staple meal, will increase. This increase is a result of international food prices trend, however, it comes just after the Seychellois government had devalued its currency, which made price of basic food items too high for the average family.
Finance Minister Danny Faure presented the 2008 Budget that introduced excessive increases in the price of water, electricity and many other necessities.
It should be noted that the opposition has taken the speaker’s rejection as insensitive rejecting of important issues of the country, while the population becomes more vulnerable to price increases.
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05.31.08
Posted in Financial Services, Offshore Services, Seychelles banking, Seychelles offshore jurisdiction at 2:09 pm by Robert Klien
According to the press release published on May 20, 2008, Bahrain-based BMI Bank appointed Frank Hoareau as the Managing Director of BMI Offshore Bank Limited, its new Offshore banking business in Seychelles.
Andrew Bainbridge, Chief Executive Officer of BMI, welcomed Frank Hoareau and noted that he brings extensive experience and knowledge of the offshore industry and banking. Bainbridge also said that the Bank is confident it will build a thriving business and capitalize on the many exciting opportunities in the Seychelles market as Seychelles is an attractive location for this venture that is supported by legal and regulatory framework and continuing economic progress.
It should be noted that Frank Hoareau is well-known in Seychelles financial circles and he is familiar with the Ministry of Finance and the Central Bank, where he held a senior position before joining Barclays offshore.
In March 2008, BMI received its offshore banking license and is planning to open for business in the 3rd quarter of 2008.
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05.24.08
Posted in Diplomatic missions, International relations at 7:35 pm by Robert Klien
New Ambassador of China to Seychelles Wang Weiguo arrived in Seychelles on May 16, 2008.
On May 20, New Ambassador to Seychelles Wang Weiguo presented his credentials to Seychelles President James Alex Michel in Victoria.
Michel welcomed Wang as new ambassador to Seychelles and expressed his satisfaction with the recent development of relations between Seychelles and China that are based on mutual trust and equality. The President thanked China for the assistance and the efforts made by its leaders to promote economic cooperation between Seychelles and China. He also said he awaits that the mutually beneficial cooperation will be developed in the future.
The New Ambassador recalled the development of bilateral relationship in the past years since diplomatic relations between the two countries were established in June 1976. He also said he would do his best to push the relationship between Seychelles and China towards win-win partnership.
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05.18.08
Posted in International relations, Seychelles government at 5:20 pm by Robert Klien
On May 12, 2008, it was announced that a delegation of the National Assembly of the Republic of Seychelles is going to pay a visit to China. It was also announced that the Seychellois delegation was to be led by deputy speaker Wilby Lucas.
The delegation is paying an official good-will visit to China from May 14 to May 21. The visit was ogranised at the invitation of the Standing Committee of the National People’s Congress of China.
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05.15.08
Posted in Business and Economy, Foreign investments, Tourism industry at 9:36 pm by Robert Klien
A global leader in providing IT solutions for the hospitality industry, IDS SOFTWARES Pvt Ltd, has announced that it is entering Seychelles. The company has partnered Paradise Computer Services (PCS), one of the largest IT companies in Seychelles, in the venture that is expected to be successful.
As tourism is the mainstay of Seychelles contributing more than 21% of the GDP and accounting for more than 60% of the forex earnings, IDS products in Seychelles have a high potential. Entering Seychelles strengthens the presence of IDS in the African continent.
It should be noted that the above announcement closes in on company’s target of expanding into 40 countries by the end of the financial year 2008-2009.
Rajesh P Yadav, general manager of IDS, commented on the entry into Seychelles, noting that the company is happy to tie up with Paradise Computer Services for sales and support in the Seychelles market as far as Africa offers great opportunities for its products.
PCS is a leader in IT integration in Seychelles. Based in Victoria and Mahe, the company was established in 1995 with a view to provide an unparalleled level of service to the IT sector.
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05.03.08
Posted in Business and Economy, International Organisations, Seychelles government at 8:54 am by Robert Klien
Seychelles has launches a programme that is aimed at training people as regards their human rights and civil liberties.
On April 28, 2008, a 2-week workshop opened at the Police Academy. It is the 1st activities in a series under the human rights project launched to improve the skills of both governmental and non-governmental staff in this area.
The project was launched by Patrick Pillay, Minister for Foreign Affairs. Mr Pillay noted the launch of the project comes in a year when the world is celebrating the 60th anniversary of the United Nations’ Universal Declaration of Human Rights, the theme of which is Dignity and justice for all.
The whole project will last for 2 years. It is co-funded by the European Union and the United Nations Development Programme and based on an agreement signed that was signed by Seychelles in July 2006.
The project is expected to increase awareness of the great importance of human rights issues among the public. It is also hoped to strengthen respecting and adopting human rights practices by police and prison officers, while informing the judiciary, media and civil public on these issues.
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04.18.08
Posted in Double Taxation Agreements, Financial Services, Offshore Services, Seychelles IBC, Seychelles banking, Seychelles companies, Seychelles offshore jurisdiction at 3:01 pm by Robert Klien
Publishing Seychelles Strategy for 2017 has been announced previously.
It has also been already told that the mission stated in the above-mentioned document was doubling the Seychelles’ GDP by 2017, which is to be achieved by focusing on developing the offshore financial services industry, fisheries and tourism expansion programmes, and the growth of other economic sectors.
However, it is worth covering another important aspect of Seychelles Strategy 2017. The strategy emphasizes the importance of the active promotion of the menu of offshore services on offer including IBC registration, special licence companies, mutual funds, and insurance captives. On of the strategic objectives regarding this is promoting corporate culture and developing the financial sector by means of setting up a stock exchange that will serve as an important mechanism to enhance Seychellois stakeholding in fisheries and tourism.
Innovation in business practice is to be encouraged and customer service delivery standards are to be raised to strengthen the industry.
As Seychelles is going to develop as a financial jurisdiction, its potential of developing a reputable offshore banking sector will be exploited.Â
According to Seychelles Strategy 2017, the impetus to offshore banking development could be the country’s double taxation avoidance (DTA) agreements signed with 10 countries. Through Seychelles-incorporated offshore companies, international investors will be encouraged to invest in Seychelles’ DTA partners, and the jurisdiction is to benefit from banking services on these transactions. Of course, where appropriate, local legislation should be updated.
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04.13.08
Posted in Business and Economy, Foreign investments, International Organisations at 11:52 am by Robert Klien
The visit by President Michel to Kuwait in February helped attract Kuwaiti investors to the Seychelles.
On April 8, 2008, three representatives of a major Kuwaiti business developer paid a visit to Seychelles’ President James Michel at State House. Later they said that they are going to make huge investments into the jurisdiction.
After discussions with the President, the managing director of the BluePrint company, Meshal Almelhem, told the local media that with assurances from the African Development Bank (ADB), the private sector represented by his firm has made a decision to invest in the African region. He said that having seen President Michel, the country and the people, he ans his colleagues from BluePrint need not look any further than Seychelles as they have understood that it is a very stable jurisdiction.
He also added the following: “We have realised that Seychelles is a goldmine and a haven for investors. There are many opportunities that will create mutual benefits for the government and the people of Seychelles and the investors as wellâ€.
BluePrint will work with the government of the Seychelles to develop potential projects in the finance, technology, and tourism as well as in other sectors.
Mr Almelhem was accompanied by Ahmed Alquraishi and Yousel Al Bader from BluePrint, and Peter Sinon, executive director of the ADB. Also, the Minister for Community Development, Jacquelin Dugasse; Secretary of State, Alain Butler Payet; principal secretary for Presidential Affairs, Jean-Paul Adam; and special adviser in the Ministry of Foreign Affairs, Vivienne Focktave, were present at the meeting.
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04.09.08
Posted in Double Taxation Agreements at 9:10 pm by Robert Klien
According to the Qatari English language daily, on April 4, 2008, Sheikh Tamim bin Hamad Al Thani, the Deputy Emir of Qatar, issued a decree ratifying a double taxation avoidance agreement (DTA) between the Seychelles and Qatar.
The double taxation avoidance agreement was signed by representatives of the Seychelles and Qatari governments in July 2006. This DTA allows investments made in one of the two jurisdictions from the other one to qualify for tax breaks on dividends and royalty payments.
Following a visit by Seychelles President James Michel to Qatar earlier in 2006, the agreement has come into being. The talks were aimed to enhance investment links between the Seychelles and Qatar. They came a few days after the Seychelles had concluded a similar double taxation agreement with Cyprus.
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