Seychelles Sliding To Bankruptcy For The Second Time
The Seychelles Government has announced measures, which will lead to higher interest rates on bank deposits and loans, to reduce pressure on demand for foreign currency after national growth slowed during the first quarter of 2014.
Speaking at a press conference this afternoon, the archipelago’s Finance, Trade and Investment Minister Pierre Laporte said though the economy is still buoyant, demand for foreign exchange this year surpassed receipts, leading to shortages at banks and money changers.
He said this is linked to increased pressure by the construction, wholesale and retail trades, whose borrowings have gone up by 13 percent this year.
Laporte said up to 90 percent of any credit or loan component is spent by way of foreign exchange.
http://www.habarizacomores.net/?p=52451
Practical Impact
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High interest rates, as a practical matter, discourage borrowing and spending by both individuals and businesses. You and other consumers will postpone purchases, particularly those of big-ticket items, such as homes, automobiles, and boats. Business reacts much the same, putting off capital spending that is not absolutely essential. As spending slows, so too does the rate
of economic growth.
Read more : http://www.ehow.com/about_5314153_effects-high-interest-rates.html
1. Increases the cost of borrowing.
2. Increase in mortgage interest payments.
3. Rising interest rates affect both consumers and firms.
4. Government debt interest payments increase.
5. Reduced Confidence.
GOODBYE BANKS, HELLO BLACK MARKETS!
Practical Impact
-
High interest rates, as a practical matter, discourage borrowing and spending by both individuals and businesses. You and other consumers will postpone purchases, particularly those of big-ticket items, such as homes, automobiles, and boats. Business reacts much the same, putting off capital spending that is not absolutely essential. As spending slows, so too does the rate
Read more : http://www.ehow.com/about_5314153_effects-high-interest-rates.html
Hi Black market.......you are the new born son of Pierre Laporte?
ReplyDeleteSince the influx of dollars my business has been eradicated, God has answered the prayers of the black marketeers.
ReplyDeleteWhen government does not listen to business, black market will always come back.
ReplyDeleteBusiness does not like black market, business likes a reasonable hand in the market that encourages investment, and encourages reasonable growth rates that benefit everyone who is a serious contributor to the country.
Those who are not serious,fall to drugs, stealing, and those who become part of social malaise equation, cannot be helped without a solid productive economy.
However unfortunate this is, it is the Truth. Even priests need money to live eat, and help others.
We should all be focused on making the economy productive for the benefit of Seselwa Rasin first, and investors second.
Seselwa Unite!
Sesel Pou Seselwa!
I agree. priests need money.
ReplyDeleteThe 50,000.00 per month I get is not enough.
I need more.
Wavel
leave the priest out of this one, this burden this humiliation is caused by PL Government and association!
DeleteWhat else can I add?
ReplyDeleteDON'N LI ANKOR CENK!
a fiasco of power and greed, created by lack of knowledge of today's government! Seychelles Government is known to the part of the world I live in as complete failures, it took a ludicrous government to put the rest of us to shame in a bad humiliating way! ANNOU REPRAN NOU PEI!
ReplyDeleteVery soon all Seychellois flying out will be limited to 200 dollars again.
ReplyDeletePEUPLE SEYCHELLOIS ASE LES PP KOUYON'N ZOT VOT POU SANZMAN.
EXPRIM ZOT VIEW AVEK JOHN OUSWA MET LI LO SA BLOG (SFP)
I am loving black market already.
ReplyDeleteNext will be;
ReplyDeletenapa disik
napa dile
napa diri
napa fromaz
napa diber.
napa lafarin
napa napa napa napa
President of the Sechelles was the only white President in Washington with Obama.
ReplyDeleteDid you see all the DICTATORS taking pictures?
Did you see JAM smiling....... poor guy he forgot his dentures. GET SON LABOUS MOU.
Peoples who live in a mess will always like to stay in a mess not seen around EU countries homeless peoples get apartment but they prefer to live in a mess they go back on streets again same with PP regime.
ReplyDeleteSeychellios have choice not to stay in this mess for more years just stop voting for PP moron! ban kouyon you drink alcohol for free on campaign and vote day paid by PP ek zot ban lasetklic etranger, but after vote day you still living in a mess and begging for some oil and rice.
PP have put a devil on you my peoples it up to you to remove it off your back..
Pl lowers interest rates on subsidized guaranteed loans. They make the banks rich, screw the poor Seychellois.
ReplyDeletePl buys new cars every year. Now they want to restrict import of cars again?
Pl is sick"
Can some one get them medicine in the form of a bullet to the head of this evil regime??
As Aprtilepep bankrupt us a second in a little of 5 years.Alporte is teeling Seychellois that they would have to make extra sacrifies to save paritlepep and pay for paritlepep failures.But,strangely Dr LAporte,who should be leading by example failed to ask himself and his partilepep ilks to cancel their self-given pension for life which is costing Seychellois tax payers' a fortune(especially now that paritlepep has shown it is incompetent.
ReplyDeleteAprtilepep should bring ministers salary to that on 2007,cancel their illegal life pension,close uselles Ambassies in Countires like CUBA,Swaziland,Ubekistan,Afghanistan ,North Korea to save money and stop wastage.Ministers should be given public bus tickets and encourage to use public tansprt to save on high cost of state big cars,free fuels and wastage.GURKAS ,Scully who are illegally controlling part of on defence forces should be send to their homeland,unnnecesary projects like building new Doemstic flight terminal should be put to a halt,it might be necessary but should not be a priority in a financial crisis, living in those countries we think there is a need to have Ambassies Like CANADA,UK etc... etc...
Aprtilepep should be the first to make the sacrifiy.they have bankrupted us and forced a chronic economic poicy unilaterally on the people.In fact,partilepep should be asked to demmisison,call for immediate new election,or built up a coalition government including all Aprties with the sole aim ,namely to put back the country on track immediately.
A government which has failed.proven incompetent should go,and have nothing more to do as part of government.As to LAPORTE,he should demmision and go sell fish at Victoria market.Michel thinks by giving Obama a hug,makes him a great leader----in fact it is evidence of incompetency.Suddenly,Communist Michel likes,loves America the country he throught the decades he has been for decades consider Imperialist.
Laporte as Michel and those working for the partilepep inherit a high level of extraordinary incompetency and have gross deficiencies when it come to managing a small country like ours.They should go and find a life.
Jeanne D'Arc
Partilepep is creating mass poverty.While themselves they still keeping their astronomic pension for life,double salary,free government cars,travel abroad by flying in first class,partilepep still giving Pierre tax payers money as fake Oppostion leaders, still recruiting foreigners who we need to pay in dollars to illegal control our instituions,still paying mercenaries to brutalize Seychellois,still wasting tax payers money is fnantsy projects some we donot need ,some we need maybe but it is not an actual priority,still allowing fianancial leakage,still continue with money laundering,still depending of mass importation of exapts etc.. these things that broke our socio-economy,society and Laporte seems lost ,and have no alterantive to Partilepep chronic economic policy.Why not demmsion Laporte,You have failed dog.
ReplyDeleteJeanne D'Arc .
04.22
ReplyDeleteYou right,the only thing that we have is rich partilepep ministers with their ill-gptten wealth,their pension for life,astronomic salary they double last year from themselves^,and all that for their for failures.And of course,they donot feel they have sacrifice to make for their gross failures but ask Seychellois to pay for their failures.
The partilepep government should resign:
ReplyDeleteThis will finally put an end to the dictatorial communist era of 40 years.
(this should have happened very much earlier)
HOWEVER,
Should this happen, because of the dire economic situation, it will take another 40 years of successive governments to turn the Seychelles back on to the tracks of economic prosperity again!
The damage done to the Seychelles by Rene and Michel is unimaginable.
What have the people of Seychelles done to deserve this?
They capitulated en masse to have the Rene Doctrine slammed down their throats!
Individuals and families who could not take it fled the country like they were asked and probably forced to by the devil himself - Rene!!!
Dr Laporte tells us that the shortage of foreign exchange is linked to high demand by construction frims,wholesale etc...I guess Laporte that shows that we depend too much on import.
ReplyDeleteBut the major causes of shortage of foreign exchange Dr Laporte is in fact the imbalance between a growing economy and the a weak export sector.In other words, LAPORTE,Seychelles' foreign currency difficulties need to be addressed by an appropriate combination of FISCAL;MONETARY;EXCHANGE RATE and Structural Policies.Such a policy mix,would ensure that demand keeps pace with supply ,Dr Laporte.
Morevoer,Dr Laporte,government extravagant spending and wastage cause foreign currency shortage too.
-Decline in National currency value--contribute to foreign currency shortage too,Dr Laporte.
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So ,i think the best solution to tackle the situation create by Dr Laporte is to tap in the ofriegn exchange reserve---Why?Because when market expect Devaluation,downward pressure palced on the currency can really only be offset by an increase in the interest rate.Cnetral Bank has to shrink the money supply ,which inturn increase demand for the. currency.Bank can do this buy selling foreign reserve to create a capital outflow.When bank sells a portion of its foriegn reserve,it receive payment in form of domestic currency,which it holds out of circulation as a Asset.
propping up exchange rate cannot last forever though,both interms of a decline in foreign reserve as well as apolitical and economic factors.,such as rising unemployment.
devaluating domestic currency by increasing fixed rate,usually results in domestic good being cheaper than import goods,which should increase output.But Laporte,we import 90 percent of goods therefore it is hard to see how devaluation would make local products cherapers than foreign goods.Of course,in the short term,devalaution increases interest rate which must be offset by central bank through an increase in money supply and in foreign reserve.However,propping up a fixed rate can eat through country's reserve quickly,and devaluating the currency can add back reserve.
Jeanne D'Arc
When would Michel start buying our own purse Seiners in order to reduce those big European Tuna seiners robbing our Natural resources?
ReplyDeleteYou donot need to buy these big ,destructive Tuna Seiners like those European posses and fisghing in our EEZ.They are the most destructive to stock and sustainable development,But POLE AND LINE boats which are afforadable,better from sustainable fishing in our waters and can be easily managed by Seychellois.We must produce more Locally and export more partilepep.One way of producing more ourself is by doing things by ourself Pl.
-Inadequate foreign exchange reserve would call for an increase in foreign currency debt or lead to changes in market perceptions about the sustainbility of the debt.Such change would affect the fiscal deficit not only through direct interest costs but also indirect through the Central Bank profit and loss.
ReplyDeleteBreaking news; there are shortage of toilet papers at the moment.
ReplyDeleteToilet paper shortages?
DeleteNo problem.
The Arab invaders will soon get the people to wash their deryer with running stream and river water!
Use Michel tie or suit or why not coconut fibers as in the old days.The later is bio,.free and effective .A National product.
ReplyDeletetHAT EXPLAINED WHY PL HAS ILLEGALLY PASSED A ALW THAT ALLOW PL TO SELL OUT OUR PATRIMONY TO FORIEGNERS.I REMIND PL THAT SEYCHELLES PATRIMONY OR GOVERNMENT LAND BELONG TO THE PEOPLE,NO ONE CAN UNILATERALLY AND ILLEGALLY DICIDE WITHOUT CONSENT OF THE PEOPLE TO SELL OUT THEIR LAND .lAWS PASSED BY THE PEOPLE THAT FORBID ANY SELL OUT OF LAND TO FOREIGNERS CAN ONLY BE MODIFIED,ALTERED BY THE OWNERS WHO ARE THE PEOPLE OF SEYCHELLES.
ReplyDeleteSTOP SELLING OUT OUR PATRIMONY PL.
Partilepep continue to build more four7five star hotels even when there is a decrease and already too many five star hotels inBel Ombre.Four star hotles meand financial leakage,more exapts to colonize Seychelles,and destruction of environment.
ReplyDeleteSay no to pl four star hotel at Bel Ombre----stop destroying our environment pl.And cancel the illegal law you passed that illegally aloow pl to sell out Seychellois patrimony to foriegners.Governemnt land means Seychelles people land,Only seychellis can change existing laws on such an important issue that would dispose them from their land not a gang of mafias call pl.
I was listen to s song of Ton pa on youtube when he was still young and this song said protect our beautiful island for tourists.Oh ton pa you gone but behinde they are destroying it sad you are not here with to see.
ReplyDeleteToilets paper shortages!Michel and pp want Seychellios to use their hands to clean their a** like their arabo friends or take( labor coco)Seychellios when I hear those kind of stuff I think Seychellios are them self to blame if things are getting worst and sticky no one else just continue VOTE for pp.Thats why I never help a pp support when begging for money or for rice and oil.
ReplyDeleteIts time Seychellios family learn their children how to save when they start counting.I think this generation 80% don't know how to save like this government spend more than their income.
Pp bulit 7 star hotels to ISIS in it they are coming.Remember Seychellios Iraq 100 years ago was a christian country today may be 10 prozent left and ISIS buried them alive in thier own same will happen to you Seychellios in a couple of years.
ReplyDeletePWhile aprtilepep is illegally planning to destroy part of Bel Ombre to build more ammut Hotel in order to please foreigners and in order toimport Sri LNakn to pelase RAJAPAKSE,St Ange is making speeches on Sustainable and durable tourism.Seychelles today have more than enough Hotels.What is needed is not more hotels but developing strategies such as developing OFF SEASON tourasim to generate more revenues that more hotels would.Partilepe seems to be developing MASS tourism which would help destroy the existing quality tourism toward mass tourism which would destroy more the environment etc.....
ReplyDeleteAs to LAPORTE,TIRANt they calling on Seychellois to do government job namely investigating,and apprehending partilepep criminals printing forge sr500 notes.Such crime often goes hand in hand with Durg trafficking,Huamn abuses,money< laundering--thus probably the criminals are the same aprtilepep members inovle in hard drug trafficking and money laundering.
Why does TIRANT simply remove these Sr 500 notes in circulation if his serious?Fialing to do so DR TIRANT will soon destabilize an already crumbling/bankrpted economy,impact inflation,forged money ended up in Bank reserve and as consequences LAPORTE,it will crearte an imbalance in the supply and demand thereby apply downward pressure of the funds rate.Does that means the TREASURY will take the hit'NO,The TREASURY ,that implies the TREASURE is profit-seeking enterprise,no different in this case.
Who will take the hit then?Counterfeit Notes would increase the CASH in circulatuion and dilute value its value.The Holder of the cash would take the hit.Is TIRANT and LAPORTE not doing anything in order that--The additional interest payment that would be woed to the PUBLIC by TREASURY resulting from counterfeit notes would be covered by INCREAING TAXES.Is that what Laporte is pre-meditating on ROB an improvished Nation by more astronomic taxes.
REMOVE these SR 500 OUT OF CRICULATION tirant BEFORE THINGS DESTROY COMPLETELY THE ECONOMY DONKEY.
Jeanne d'aRC
Partilepep members have half-brinas .they think short-term and foten their motive is supported by corruption ,bribery whiotuh any understanding of susutainble development.They want Seychelles to end up like Phuket Island Thaialand,Majorca Spain,some once unique destinations like palces in Bali which have now become normal destination with mass tourism .Because the failure of these repective government fialed policies--these destinations have bben destroy<ed and have no choices than to depend on mass tourism to make end meets which is a disaster.
ReplyDeleteIf partilepep does not stop building hotles especially five,four and hotels with too many rooms ,Seychelles is on the way to join those once unique destinations.then we would have mas tourism that is many cheap tourists spending less and all the other consequences they carry with them.Having a title of being unique ,is not nothing partilepep .it is key to advertising,enticing tourists to choose Seychelles rather than other island tourist destinations.Destroying this tiltel would make it harder for Seychelles to compete.
Th rational is to remove these Sr 500(genuine notes)out of circulation Laporte.It cost to do so,but it is more appropriate than to do so than letting Sr 500 countefrfeit notes invade the economy which would have much more negative impact on the economy.Morevoer,Maybe it is time to think of producing more seucre notes (such as plastic notes etc... ^with more security features).What is clear Central Bank must react quickly ,the problem has been going on since last year and it cannot be continued Laporte/Tirant.
ReplyDeleteCiitzens can bring their notes directly to banks to be exchange into other notes etc.....
my my my
ReplyDelete