COVID-19 Support Programme: Supporting Systemic Economic Operators and Financial Stability
22 May 2020
The Bank of Mauritius is closely monitoring the economic situation together with all its stakeholders. In line with its mandate, the central bank has already implemented a series of measures, and will take any additional measure it deems appropriate to maintain the stability of the financial system and mitigate any adverse impact on the economy in the context of COVID-19.
In this respect, the Bank of Mauritius is announcing the following:
- The Mauritius Investment Corporation
- The Bank of Mauritius (Bank) is setting up the Mauritius Investment Corporation Ltd (MIC) as a Special Purpose Vehicle under its aegis.
- The Bank has come up with this initiative following extensive consultations with major economic and systemic operators in the tourism and manufacturing sectors. The objective of the MIC is to mitigate contagion of the ongoing economic downturn to the banking sector, thus limiting macro-economic and financial risks.
- Operating independently within the parameters of a strict governance structure, the MIC will provide support through a range of equity/quasi-equity instruments in view of ensuring that domestic systemic economic operators are kept afloat during these challenging times and that jobs are preserved.
- The MIC, an innovative people-centric initiative, also aims at securing and enhancing financial wealth for current and future Mauritian generations while ensuring the stability of the banking sector.
- The MIC is being established by the Bank under Section 6(1)(y) of the Bank of Mauritius Act and will be funded in terms of Section 46(5) thereof.
- ONE-OFF exceptional contribution to stabilise the economy
- On account of the negative impact of COVID-19 on the economy of Mauritius, the Board of Directors of the Bank has, in these testing times, decided to provide Government with a ONE-OFF exceptional contribution of Rs60 Billion. This ONE-OFF exceptional contribution is being made by the Bank under Section 6(1)(oa) of the Bank of Mauritius Act, solely for the purpose of assisting Government in its fiscal measures to stabilise the economy of Mauritius.
- This ONE-OFF exceptional contribution is being made under Section 6(1)(oa) of the Bank of Mauritius Act.