Bank of Mauritius launches new credit line for exporters
The Bank of Mauritius (BoM) has made available a €600 million credit line to exporters in order to minimize their exchange rate risks.The Bank of Mauritius (BoM) has made available a €600 million credit line to exporters in order to minimize their exchange rate risks.
The institution took this action after the rupee slightly depreciated following several consecutive months of appreciation.
Governor of the BoM Rundheersing Bheenick said the credit line was intended to protect exporters from the effects of the euro crisis, Business Day reports.
The eurozone is indeed the main market for exporters on the island and the current crisis has decreased demand for exports such as Mauritian textiles and sugar.
BoM believes this credit line will allow exporters to minimize their exchange rate risks and added it introduced the measure taking into account the impact of these risks on the stability of the banking sector and the financial services industry in general.
The loans are expected to support SMEs and other exporting firms activities and thus stimulate economic development.