All policies relating to the way the Development Bank of Seychelles (DBS) operates have been comprehensively reviewed in a two-day retreat which ended Saturday evening.
Held at the Le Meridien Barbarons hotel, the event had the management, partners and board members taking part, aiming to chart a new mandate for the bank.
Also present was representatives of the bank’s supervisory body, the Central Bank.
At a press conference held at the hotel on Saturday evening, DBS board chairman Barry Faure and chief executive Roger Toussaint explained the reason behind the need to carry out such a wide-ranging reassessment of the bank’s strategies.
Having started operations in Seychelles in 1978, the bank had all along adjusted policies to fit the context of the day in their capacities to finance or assist in financing viable projects in various sectors in Seychelles.
Mr Faure said the move will also include changes in legislation surrounding the bank’s operations as well as general structure for better governance, client and staff conditions.
“The judiciary will also be brought on board to deal with cases where clients default and do not have the willingness to pay back their debts in a sustainable manner,” he said.
“We have also seen the need to work more closely with the registrar, so that for example procedures to register land or property are made smoother and quicker.”
Some of the setbacks the bank said it expects to meet are actively negotiating long-term financing of projects at a cheaper rate, either locally or overseas.
“The more we can provide long-term financing at favourable rates, the more we will be able to provide lending policies that are more favourable,” said Mr Faure.
He also said they expect that with the legislative changes they are planning to make, the bank will need to increase its internal capacities to carry out effective and smooth provisions, structures and procedures.
Mr Toussaint said being constantly in contact with their clients have enabled them to gather and use their input.
“With President James Michel’s call for a new Seychelles and his vision to see more people doing their own business, driving the private sector rather than being employed by the state, DBS and its partners are doing their part to drive forward business development in Seychelles, using as much as possible best practices and meeting international norms,” he said.
In a speech on Friday night to address those taking part in the retreat, the Minister for Finance Danny Faure said the government feels that the DBS when working towards a new mandate, believe they must give thought to how to cater for some of the sectors where other private sector institutions will be more risk averse.
“The DBS, as its name suggests, should focus on helping development goals. In this context, we see its role in helping to get entrepreneurs off the ground in areas of business where traditional retail bankers would deem as new or too risky. For example it could be that the borrower is new or is undertaking an activity that is more difficult than traditional import or retail or simply service oriented,” he said.
“Thus, areas such as fishing, small scale manufacturing and agriculture are those where we expect the DBS to actively lend more towards.”
The DBS’ new mandate is expected to be completed and put in place early next year.
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