set of regulations for smes, which were developed after extensive consultations with the sme associations, smeda, provincial departments and have been in force since january 2004. with the enforcement of these regulations a number of constraints in sme financing have been removed and the banks now in a better position to disburse loan to smes without fear of violating the prudential norms. the new prudential regulations for smes do not make it mandatory for banks to require collateral but allow them to take into consideration asset conversion cycle and cash flow generation as the basis for loan approval. we would be willing to further improve and strengthen these regulations if any practical difficulties arise in their implementation. the sbp has geared up its efforts towards providing policy advice to relevant stakeholders in the sme sector especially the banks / dfis. for this purpose, a separate sme department has been recently established in the sbp, which will organize itself internally to respond to the financing needs of smes by inducting skilled manpower and training of younger staff. the newly established department is tasked with creating a conducive macro - prudential environment for banks / dfis to increase the flow of credit to smes ; to promote a strategic focus on smes on the part of the banks / dfis and to help banks / dfis adopt best practices in the development of their sme business lines. our short - to - medium term strategic plan also envisages financial sector deepening and broadening of access to formal sources of finance by the smes as one of our top priorities for the next five years. for the smes, as an initial step, delivery of credit by banks will be monitored and intermediary / technical support organizations will be encouraged to assist the smes in preparing bankable proposals. in the medium term, the staff of the banks will be trained in program lending. sbp will also endeavor that a guarantee scheme is established by the government of pakistan ( gop ) to share the credit risk of the financing banks. to pursue this strategy, close coordination will be established with the smeda. the sbp is also expanding the scope and coverage of its existing on - line credit information bureau by including all loan amounts. this database will be a powerful tool for all the banks and financial institutions in mitigating risks in lending to smes. under the framework of our strategic plan for 2005 - 2010 we will also explore the possibility of allowing the setting up

rundheersing bheenick : launch of the monetary policy committee at the bank of mauritius opening address by mr rundheersing bheenick, governor of the bank of mauritius, at the launch of the monetary policy committee at the bank of mauritius, port louis, 23 april 2007. * * * in the presence of deputy prime minister and minister of finance and economic development, former governor sir i. ramphul, directors of the bank of mauritius, distinguished guests and other dignitaries it is a great honour and indeed a pleasure for me to add my own words of welcome and to address you today on the occasion of the launching ceremony of the monetary policy committee as a statutory committee of the bank of mauritius. it is a landmark move. it is eloquent testimony of our determination to rid our structures and processes of remaining outdated practices, loopholes, and bottlenecks in our quest for excellence. it is designed to leverage our economy to its next level of excellence and it is all happening in the year when the bank is gearing up to celebrate its 40th anniversary. it has a touch of history. it is fitting, therefore, that former governor, sir indur ramphul, and so many of you associated with the bank ’ s early days should be with us this morning. you will forgive me if i read some more history in today ’ s event. it was exactly 13 years ago, on 22nd april 1994, that the national economic development council – of which i was the founder - chairman, – published its report entitled improving efficiency in the financial sector in mauritius. the report recommended “ some major structural changes for a more efficient and dynamic financial sector, which can support and sustain the other sectors of the mauritian economy to stay globally competitive ”. the objectives are no less pertinent today than they were 13 years ago. if i may be allowed to plagiarise myself, the nedc was set up as a tripartite, high - level, policy review and policy advisory body to the government of mauritius, with an open - ended remit in all matters related to the economic development of mauritius. it provided a forum for informed debate on vital economic issues to contribute to the development of consensus regarding ways of improving economic performance and national competitiveness. a laudable objective, indeed, and one, i may add, that is being so ably pursued today under the baton of my friend mohamed vayid. what the nedc did not have, at least in