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Mauritius Central Bank Governor Harvesh Kumar Seegolam on How to Navigate the Pandemic

“My priorities to achieve economic stability have been threefold: action, protection and sustainability. These bywords will continue to guide our approach to responding to the pandemic and future challenges. We have been able to maintain financial stability and protect the banking industry against contagion from the real sector. We have provided critical support to economic operators, SMEs, households and individuals through a mix of conventional and unconventional measures. These included moratoriums facilities, regulatory forbearance and a one-off government contribution for an economic stabilisation programme. We also established the Mauritian Investment Corporation (MIC), which has successfully prevented the potential failure of systemically important domestic companies. This has contributed to maintaining financial stability and saving jobs, thus protecting the economy. Today, our banking sector remains well capitalised, levels of bad debt are in check, liquidity is well above required levels and buffers are being rebuilt. This being said, though stress tests show that banks remain resilient, we must not rest on our laurels. As is the case for many central banks around the world, a critical point the Mauritian central bank must consider is how to phase out our support measures. This unwinding must be done cautiously, and in a way that does not entail risks to financial stability.”