Banking & Insurance

The budget has introduced positive measures for the protection of depositors and laid an increased emphasis on the development of SMEs and micro-insurance with the special levy maintained up to 2014


Most important measures:

Improved protection on bank deposits
Cap on bank charges
Special levy maintained on banks

 

Some statistics
Annual loans to micro and small enterprise Rs 250m
Loans to micro and small enterprises Repo + 3 %

Banks

  • Amendment to the legislation to improve governance and protect bank depositors and  implementation of “Treat your customers fairly” programme
  • Bank of Mauritius (‘BOM’) to impose caps where necessary on bank charges
  • Appointment by commercial banks of a designated officer to deal with complaints and grievances
  • Banks having exceeded their quota on SME financing will be allowed to pair up with other commercial banks to provide financing without involving the BOM
  • Rotation of auditors by commercial banks every 5 years with a cooling off period of 3 years
  • Government will guarantee 50% of losses on loans granted to micro and small enterprises (turnover under Rs10m)
  • Development Bank of Mauritius will waive outstanding capital balance not exceeding Rs20,000 and which are more than 3 years old 
  • Low cost student loans up to Rs100,000 at Repo rate +3% with Government guaranteeing losses of up to 20%

Insurance

  • New Compensation Fund under the Insurance Act to cater for cases of “hit and  run”
  • Alignment of income tax for insurance companies with their revenue levels effective as from year of assessment 2014