BoM Extends Certain Measures Under COVID-19 Support Program
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
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