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AfricaMoney | October 19, 2017

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Banks approve loan requests of Rs 3.74 billion for SMEs in Mauritius

Banks approve loan requests of Rs 3.74 billion for SMEs in Mauritius

Data provided by the Bank of Mauritius showed that of this amount, Rs 1.59 billion is in the form of loans, Rs 1.50 billion in the form of overdrafts, Rs 183.2 million in the form of lease finance while Rs 474.3 million appeared under the category of ‘other financing’ (Image: Bank One)

Banks approved total credit facilities worth Rs 3.74 billion for financing projects of small and medium enterprises (SMEs) in Mauritius under the SME Financing Scheme from December 1, 2011 to August 31, 2014.

Of this amount, Rs 1.59 billion is in the form of loans, Rs 1.50 billion in the form of overdrafts, Rs 183.2 million in the form of lease finance while Rs 474.3 million appeared under the category of ‘other financing’, according to data provided by the Bank of Mauritius yesterday, September 22, 2014.

Overall, banks received 2,887 applications amounting to Rs 4.74 billion for credit facilities under the SME Financing Scheme, of which 150 applications amounting to Rs 340.04 million were rejected.

Furthermore, the amount outstanding at the end of August 2014 amounted to Rs 1.50 billion with Rs 838.7 million for loans, Rs 489.3 million for overdrafts, Rs 103.3 million for lease finance; and finally Rs 61.2 million under ‘other financing’.

According to the central bank data, the three banks which received most of the applications were once again all local banks namely Mauritius Commercial Bank Ltd (MCB), State Bank of Mauritius Ltd (SBM) and Mauritius Post and Cooperative Bank Ltd (MPCB).

MCB was a clear leader with 1,403 applications of Rs 2.54 billion received and only 23 applications for Rs 43.99 million rejected while SBM came a distant second with 656 applications to the tune of Rs 678.3 million received, of which 38 applications for Rs 51.38 million were dismissed.

Rounding up the top three, MPCB came far behind both MCB and SBM with 200 applications received for Rs 317.3 million and 42 applications dismissed for a total amount of 115.1 million.

Under Budget 2011, bank support to SMEs was enhanced with schemes for provision for new overdrafts and bank loans as well as renewal of existing ones.

In the latest update, under Budget 2014, former Finance Minister Xavier-Luc Duval announced that the SME Financing Guarantee Scheme had ‘exceeded expectations’.

Building on this success, the government has once more secured the cooperation of the commercial banks which will commit an additional Rs 2 billion to extend the scheme up to 2016, Duval had concluded in his budget speech.

For this year, with Budget 2015 around the corner, it remains to be seen how the SME Financing Guarantee Scheme will fare.

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