Mauritius’s central bank will reallocate some of a 600 million-euro ($728 million) credit facility offered to struggling exporters if demand for the loans is insufficient, Governor Rundheersing Bheenick said.
The central bank “will start redeploying progressively some of the funds earmarked for the special line of credit if, for whatever reason, the demand is not there,” Bheenick said in a speech posted on the Port Louis-based Bank of Mauritius’s website today.
Mauritian businesses from manufacturing to tourism are struggling to cope with a prolonged financial crisis in Europe and a declining euro, which accounts for about 41 percent of the island nation’s foreign-currency income. The central bank said on July 3 it will provide the credit facility in euros, dollars and British pounds, allowing refinancing of existing Mauritian- rupee loans.
“The global economic downturn is impacting on our exports, our employment and our standard of living,” Bheenick said. “This difficult and delicate situation requires that all stakeholders look beyond their narrow self-interest and share in the pains of adjusting to the new realities.”
The Indian Ocean nation’s economy is forecast to expand 3.5 percent this year, the slowest pace in three years, according to Statistics Mauritius. Tourism arrivals for the six months through June rose 0.5 percent from a year earlier, missing a 1.6 percent forecast set by the data agency.
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