50% GUARANTEE BY SIC -another MCCB!

Given the reluctance expressed by the banks because of the risks of non-performing loans, the State Investment Corporation will be providing a 50% guarantee for an overall amount of Rs 4.7 billion ,under certain conditions, on the loans to the affected economic operators under the two Schemes of the Bank of Mauritius,-the Special Relief Fund of Rs 5 billion and the Cash Reserve Ratio Special Account of Rs 4.3 billion.

SBM Financial Statements for the year ending 31 December 2019

After the Air Mts fiasco, here's another one, typical of the gestion à Lakwizinn.

Helicopter Money and Governments relief (IMF)

The coronavirus, and lockdown imposed to curb its spread, are already increasing the risks of unemployment and causing humongous loss to the economy. The costs will be   staggering (expected to be over 15%  cent of GDP ).A surge in public funding  is inevitable to ensure a comprehensive response- strengthening our health capacity to battle anypossibility of a second wave of infection, providing substantial relief to the needy and a stimulus package to revive the flailing economy .

Ce que Sithanen propose nest que de la poudre aux yeux.

After the fiasco of his supposedly ingenious proposal for “helicopter money”(the monetisation of debt) which received quite a beating from different quarters (including us), he tries to make up by proposing a new unworkable concoction of a Recovery Fund of Rs 40 billion- a fund that he claims will be burden sharing, fair, equitable and effective. The contributors to such a fund will be the Government, Bank of Mauritius, the Commercial Banks, the Corporate sector, IMF and WB and other donors or Partners in Development. 

Financing the rebooting of the economy.

(Published in Weekly issue no 397)

In a recent interview in a local newspaper, Manou Bheenick , ex-MoF, Ex-BOM’s governor, the ex-Director of MEPD, the architect of Vision 2020 …. first of all pinpoints ( as we have highlighted before) the pre Covid-19 mismanagement of the economy by the Jugnauth/Padyachy duo - an economy “with runaway public deficits, growing external imbalances, disappearing reserves buffers, declining productivity and slowing growth”. He also emphasises the fact that “the fiscal/debt crisis was already here well before the last election and the outgoing government was well aware of it.” 

La gestion économique de Jugnauth /Payadachy

For 2019, we have estimated the GDP growth rate to be 3%. Surprisingly Statistics Mauritius has published the National Accounts figures for the 4th Quarter 2019 which is a mere 2.8% whereas the Gross Value Added (GVA) growth rate for 2019 is estimated at 3.1%, without any indication of the corresponding GDP growth rate. (maybe a result of the shortage of personnel because of Covid-19) Or Is it because the GDP growth rate is one of the lowest since 2002 ? 

"Il n'y a que le provisoire qui dure."

(Published in Le Mauricien 14 April 2020)

Sithanen is proposing Central Bank financing to give economic and financial firepower to government to tackle the Covid-19 and the economic crisis. His proposal is that the Central Bank buys the Govt bonds issued by government which will monetise the debt but  will  not impact on the level of debt.  Sithanen got it wrong.

The bluffers !!!

You recall that FATF had greylisted Mauritius which was placed in the list of jurisdictions under increased monitoring because Mauritius has not made positive and tangible progress on several effectiveness issues, including the lack of

• effective risk-based supervision
• improvement in access to beneficial ownership information-
• capability to conduct ML investigations, including parallel ML investigations
• control and oversight over non-profit organizations on terrorism financing

Que du bla blas while we are being fleeced !!!

They tell us that they are taking action, that they have already penalised some 500 traders , that they will confiscate their trade licences....and so and so...

Meanwhile we continue being exploited by our local traders ..
Govt did take the responsibility of providing some basic provisions to the needy on the social register and ensure the delivery of pensions at home, why is it that government is washing its hands off while we are being fleeced ?

Absence of fiscal space

We are paying the price today

It seems that the slump in oil prices will not be benefiting our local consumers. A tax of Rs 4 per litre will be levied that will be remitted to the COVID Solidarity Fund as evidenced by a regulation signed by the Minister of Commerce on April 4.

The educational authorities were not listening !

Some time back, I had written an article on the “School of the Future “. I had highlighted the fact that the school as it is now won’t be around anymore with the pace at which digital technology, robots and Artificial Intelligence (AI) are all working to enhance human life and our day to day experiences. The school of the future will no more be a building with students sitting for hours at a desk and the teacher standing at the front. No, it will be more of a virtual classroom operating seven days a week, 24 hours a day.