BoM announced the extension of specific measures under its COVID-19 support program to continue to support Mauritian businesses across all economic sectors. BoM has extended the repayment period under Specific Relief Amount to meet cash flow and working capital requirements. In addition, BoM has increased the amount for swap arrangement to support import-oriented businesses and has raised the amount of special foreign currency (USD) line of credit to banks for funding purposes.
BoM introduced a Special Relief Amount of MUR 5 Billion, in March 2020, to meet cash flow and working capital requirements of economic operators that are being directly impacted by COVID-19 pandemic. This Special Relief Amount is being made available through commercial banks till September 30, 2020, to all sectors of activities impacted by COVID-19, including small and medium-size enterprises (SMEs). BoM is capping interest on these advances to the impacted economic operators at a fixed rate of 1.5% per annum. The repayment period is being extended from 30 months to 48 months, with a moratorium period of up to 9 months.
Additionally, BoM had introduced, in March 2020, a USD/MUR swap arrangement with commercial banks for an initial amount of USD 100 million. This arrangement aims to enable commercial banks to support import-oriented businesses, except for the State Trading Corporation, which will be dealing directly with BoM for its foreign currency requirements until further notice. BoM has increased the amount for swap transactions by an additional USD 100 million. This facility, which was initially effective until June 30, 2020, will now be available to banks for the next six months. In addition, BoM has now raised the amount of the foreign-exchange line of credit to banks for funding purposes, from USD 300 million to USD 500 million. The additional amount will be available to banks for the next six months. The facility will be repayable one year from the effective date of disbursement.
Related Link: Press Release
Keywords: Middle East and Africa, Mauritius, Banking, COVID-19, SME, Credit Risk, Loan Moratorium, BOM
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Next ArticleCNB Relaxes Mortgage Limits, Reduces Capital Buffer
The Australian Prudential Regulation Authority (APRA) released the final Prudential Practice Guide on management of climate change financial risks (CPG 229) for banks, insurers, and superannuation trustees.
The European Council adopted its position on two proposals that are part of the digital finance package adopted by the European Commission in September 2020, with one of the proposals involving the regulation on markets in crypto-assets (MiCA) and the other involving the Digital Operational Resilience Act (DORA).
The Prudential Regulation Authority (PRA) is proposing, via the consultation paper CP21/21, to apply group provisions in the Operational Resilience Part of the PRA Rulebook (relevant for the Capital Requirements Regulation or CRR firms) to holding companies.
The European Commission (EC) has adopted a package of measures related to the Capital Markets Union.
The European Banking Authority (EBA) published the final report on draft regulatory technical standards for the calculation of risk-weighted exposure amounts of collective investment undertakings or CIUs, in line with the Capital Requirements Regulation (CRR).
The Board of Governors of the Federal Reserve System (FED) published a report that summarizes banking conditions in the United States, along with the supervisory and regulatory activities of FED.
The Australian Prudential Regulation Authority (APRA) recently completed two pilot initiatives in its 2020-2024 Cyber Security Strategy, which was published in November 2020.
The Basel Committee on Banking Supervision (BCBS) published further information related to its 2021 assessment of global systemically important banks (G-SIBs), with additional details to help understand the scoring methodology.
The Financial Accounting Standards Board (FASB) is consulting on an Accounting Standards Update and the associated taxonomy improvements for requirements on troubled debt restructurings and vintage disclosures under the credit losses standard (for financial instruments) topic 326.
US Agencies issued a statement that summarizes the work undertaken during the interagency policy sprints focused on crypto-assets and provides a roadmap of future work related to crypto-assets.