Banks approve loans requests of Rs 3.1 billion for SMEs in Mauritius
MCB was a clear leader with 1,207 applications of Rs 2.22 billion received while SBM came a distant second with 510 applications to the tune of Rs 477.6 million received. (Image: MCB)
Banks approved total credit facilities worth Rs 3.1 billion for financing projects of small and medium enterprises (SMEs) in Mauritius under the SME Financing Scheme from December 1, 2011 to March 31, 2014.
Of this amount, Rs 1.3 billion is in the form of loans, Rs 1.3 billion in the form of overdrafts, Rs 140.8 million in the form of lease finance while Rs 402.4 million appeared under the category of ‘other financing’, according to data provided by the Bank of Mauritius this week.
Overall, banks received 2,415 applications amounting to Rs 3.9 billion for credit facilities under the SME Financing Scheme, of which 132 applications amounting to Rs 290.8 million were rejected.
Furthermore, the amount outstanding at the end of March 2014 amounted to Rs 1.3 billion with Rs 688.4 million for loans, Rs 440.2 million for overdrafts, Rs 86.9 million for lease finance; and finally Rs 69.4 million under ‘other financing’.
According to central bank data, the three banks which received most of the applications were all local banks: Mauritius Commercial Bank (MCB), State Bank of Mauritius (SBM) and Mauritius Post and Cooperative Bank (MPCB).
MCB was a clear leader with 1,207 applications of Rs 2.22 billion received and only 18 applications rejected while SBM came a distant second with 510 applications to the tune of Rs 477.6 million received and 38 application rejected.
Rounding up the top three, MPCB came far behind both MCB and SBM with 169 applications received for Rs 287.9 million and 31 applications dismissed.
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, 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 concluded.