Seychelles Leasing Investment Forum
Welcoming remarks by the Governor of the Central Bank of
Seychelles
-
April 12 13, 2017
Venue: Savoy Resort and Spa
Honourable Ministers
Honourable Members of the National Assembly
International Finance Corporation (IFC) Country Manager
Chief Executive Officer of the Seychelles Investment Board
Distinguished Guests,
Colleagues,
Ladies and Gentlemen,
Good morning and thank you for being with us this morning. It is a
pleasure and honour for me to address you this morning at the opening of
this Forum. In collaboration with the International Finance Corporation
and the Seychelles Investment Board, the Central Bank of Seychelles
welcomes you all to the Leasing Investment Forum, the first to be held in
the Seychelles. May I extend a special welcome to our foreign
participants who have travelled from afar to be here with us for this event.
Leasing as a financing tool can contribute meaningfully to increase access
to finance, an objective which the Central Bank, the government and other
stakeholders are pursuing with vigour. As you may be aware, leasing as
a financial instrument is widely recognised in both developed and
developing countries as one of the most effective and accessible
mechanisms for financing the expansion and development of business,
means of production, asset finance necessary for the development and
for the application of new technologies in business. Changes in the global
economy and financial markets and the need for more efficient use of
financial resources have led to increased uptake of financial leasing as an
effective investment tool. It is worth noting however, that the use of
financial leasing as an effective investment tool does not depend only on
the legislative and regulatory framework but also on the accuracy of
leasing operations, effective risk management and a favourable
investment climate.
Developing greater access to finance remains a priority for the Central
Bank, especially now having put greater emphasis on financial inclusion
. In pursuit of this objective, we work in collaboration with the government
and other stakeholders, to put in place policy measures to improve access
to credit. Current government policies are aimed to support increased
access to finance for SMEs. The recent establishment and ongoing
development of a favourable regulatory and legislative environment for
the introduction of a finance leasing industry in Seychelles reinforces this
commitment. Since November 2013, a legislative framework for leasing
was introduced in Seychelles through enactment of the Financial Leasing
Act. In support of the Act, three pieces of regulations were issued in 2014,
namely the Financial Leasing (Licensing) Regulations, the Capital
Adequacy Regulations and Lease Classification and Provisioning
Regulations.
Tasked with the mandate to regulate leasing business in Seychelles, the
Central Bank is committed to the development of the leasing regulatory
framework which will assist in creating the enabling environment for this
new financial tool to prosper in Seychelles. Further work on the
development of the regulatory and supervisory framework for financial
leasing is ongoing and will continue to progress as the industry develops
and grows. Over these two days, you will be taken through the initiatives
taken by the Central Bank and other policy makers to introduce and
develop leasing in Seychelles.
It is important to consider that while the authorities will devote resources
and work towards establishing mechanisms that will support financial
leasing as a means of alternative finance, the need for all stakeholders to
work in partnership remains fundamental for the successful development
of leasing in Seychelles. Collaboration with both the public and the private
sectors is essential to foster this enabling environment. Your participation
in this forum strengthens the importance of this partnership. I hope that
you take the opportunity to discuss, debate, and share ideas and
experiences which will allow us to translate these consultations into
actions which will realise the potential of financial leasing in Seychelles.
me to stress that in consideration of today's economic environment
Allow
and realities, the focus on financial leasing in Seychelles is happening at
an opportune time. We have gone a long way in the transformation of our
financial sector which has supported the economic reforms. Our economy
continues to grow. It is time now to look beyond the present financing
opportunities and develop alternatives and new possibilities to achieve
greater economic and inclusive growth.
As you are aware, access to finance is a major constraint for the
development of SMEs globally, as is the case in Seychelles, particularly
in consideration of some of the requirements for securing traditional
financing through loans. In comparison, financing through leasing
provides less constraints in terms of requirements and eligibility criteria.
It creates the possibility for SMEs to expand their access to short and
medium term financing. Hence leasing is an alternative mechanism to
facilitate access to finance. It enables the use of capital equipment, in
particular for new enterprises without credit track records and with limited
possibilities to provide collateral. Of note, the beneficiaries of financial
leasing are not only SMEs but the advantages associated to this type of
lending translate into gains also for the public and private sector such as
investment opportunities for local and foreign companies and creation of
new job opportunities.
Ladies and gentlemen, our initiatives and engagements towards the
development of a thriving leasing market would not have been possible
without the support and commitment of our faithful partners. I wish to
conclude my remarks with a few words of acknowledgement. On behalf
of the Central Bank, I wish to particularly extend my appreciation to the
International Finance Corporation (IFC) for its support throughout the
development of the financial leasing legislative framework, its unwavering
assistance throughout the organisation of the forum and its contribution to
the funding of this project. IFC remains one of our key committed partners
in the development of leasing in Seychelles since 2013, in line with its
mandate. May I also acknowledge our local partner, the Seychelles
Investment Board which has assisted with the organisation of the forum
and all other stakeholders which have contributed in one way or another
to realise this event. A warm thank you to the team of panelists who have
gracefully accepted to be here with us today to share their knowledge and
experiences. I would urge all participants to engage actively with them
and make the most of their knowledge. Let us all contribute to create a
dynamic financial leasing sector in the Seychelles.
Ladies and gentlemen, I would like to thank you for your attention and I
wish you all fruitful deliberations over the course of the two days. To our
international guests, may your stay in the Seychelles be a memorable
one.
Thank you.