Commercial banks reduce their prime lending rates |28 October 2021

Good news for all those who borrow money from banks!

After the call from the Central Bank late last month to revise their lending rates, commercial banks have reacted and almost all of them have reduced their charges.

It was on September 28, 2021 that Central Bank of Seychelles governor, Caroline Abel, sent out a message to all banks and she was quite firm in her decision.

She said: “For several years we have been saying that we have a flexible economic regime. As CBS we do not interfere in the decisions of the commercial banks. We provide guidance and the framework for our financial institutions to operate. Now when the economy is facing difficulties, the message from Central Bank is clear: we have to support the economy. Since last year, the CBS has brought different types of support to the economy where we even use our reserve to import commodities. We also made available two credit lines to support the private sector. This step was new for the CBS as we acknowledged that the economy needed our support. On two occasions, CBS also reviewed its monetary policy. This year again, in June, we made other changes to reflect the reality of our economy. My message to all the banks is that they need to act! This is the last time CBS is voicing out about changing the interest rate.”

The Seychelles Bankers Association, through its chairperson, Philip Moustache, shared with Seychelles NATION the new rates being offered by banks with the latest figures published on October 22, 2021.