Regulatory Alerts2010-02-21
Advances to Parastatal
The Central Bank of Seychelles directs all banks to confirm that parastatal organizations have obtained the necessary dispensation or approval from statutory debt management committees before granting advances. This directive operationalizes the Public Debt Management Act 2008, which shifts oversight of parastatal borrowing to specialized committees and exempts such advances from mandatory Central Bank referral. Accordingly, the previously applicable circulars BS14 and BS19 are repealed, streamlining lending procedures for financial institutions.
~ \r-~ 'lv...vc CENTRAL BANK OF SEYCHELLES P. O. Box 701, Victoria, Seychelles Telephone: [+248] 282 000 Fax: [+248] 226 104 E-mail: enguiries@cbs.sc Ref: FSS/ADV/PAR19 Date: April 16th,2009 TO ALL BANKS Advances to Parastatal ~ At the end of December 2008,"the Public Debt Management Act 2008 was published which defines the legal framework for public debt management and specifies the procedures that need . to be followedin contractingandmanagingthecountry'spublicdebt. In line with the Act, debt management committees have been established which amongst its functions includes controlling and monitoring debt taken by parastatal organisations. Consequently, such advances no longer need to be referred or reported to the Central Bank and as such, circulars BS14 dated July 27th 1982 and October 23rd 1987, as well as circular BS19 dated April 5th1991 are no longer applicable. In light of the above, please ensure that the relevant dispensation/approval have been sought by the parastatal organization, before granting any advance to them. We count on your usual co-operation. r---- ~ P.Lapone Governor