Development Bank of Seychelles reports increase in loans

Sep 02, 2011

Annie Vidot, Director of Loans at the Development Bank of Seychelles (DBS), announced last Friday that the institution has witnessed an increase of 400 percent in the number of credit applications to finance commercial projects since 2009.

Annie Vidot, Director of Loans at the Development Bank of Seychelles (DBS), announced last Friday that the institution has witnessed an increase of 400 percent in the number of credit applications to finance commercial projects since 2009.

Xinhua news agency reports that she believes this growth is due to a combination of factors.

In 2009, the country introduced new economic reforms following a default on its payment of sovereign bonds.

These reforms included the restructuring of the public sector, including cuts to the workforce. This has, according to Ms Vidot, stimulated the creation of micro enterprise, hence the increase in credit applications.

The bank currently offers an interest rate of 8.5 percent against 15 percent on average in commercial institutions, thanks to a recent easing of the loan conditions.

Under these new rules, the DBS now requires an initial deposit of 10 percent of the total amount of the loan, against 25 percent in 2009.

The DBS was established in 1977 to assist in the economic development of the Seychelles.

It finances viable projects in various sectors of the economy, including agriculture, fisheries, industry, tourism and services, according to the bank's website.
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