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Eight point plan to boost SMEs
http://www.defimedia.info/articles/2072/1/Eight-point-plan-to-boost-SMEs/Page1.html
Indradev Curpen

 
By Indradev Curpen
Published on 07/24/2009
 
Vice Prime Minister and Minister of Finance, Dr Rama Sithanen has announced eight measures to help SMEs facing financial difficulties due to the world economic slowdown and  pave their way to recovery.

The eight measures are:
Enterprises with a Rs 50 million budget will be helped to acquire modern production tools. Government is investing Rs 500 million in this scheme. The money will be given through SIC to leasing companies at an interest rate of 5%, which in turn will be given to entrepreneurs at 8.5%.

Those with a turnover of Rs 150 million will be given credit facilities, through leasing companies at the rate of 8.5%. Government has invested Rs 400 million in this scheme. SMEs grouped in a company will be given facilities through 'Equity Financing'. They will be given loans up to Rs 5 million through commercial banks. Enterprises with a turnover of Rs 5 million to Rs 50 million will be helped by commercial banks with a fund of Rs 300 million at an interest rate of 5.75 %.

Small enterprises with a turnover of less than Rs 5 million will be helped by a scheme set up by the DBM for their cash flow and for structuring their business. Government will provide them with free consultancy.
A scheme will be set up to enable work and study concurrently in enterprises with the help of the Empowerment Programme.

Small hotels, guest houses and restaurants will be able to offer a better quality service under a scheme financed at 90% under the supervision of the Tourism Authority.

 Enterprises in difficulties may have their debts re-scheduled at the DBM. 
A moratorium of one year is given to taxi owners working at hotels under renovation to service their debts.

An Export Credit Insurance Scheme is also under study  to help the export oriented enterprises  provide insurance of their merchandises until destination. These measures are being implemented as from Tuesday, July 21, 2009.

The measures were announced by the Minister of Finance on Monday in the presence of  Mahen Gowressoo, Minister of Business, Enterprise and Cooperatives, Dharam Gokhool, Minister of Industry,  Raj Makoond and Amédée Darga, co-chairmen of the Mechanism for Transitional Support to the Private Sector.

Before announcing these measures,  Dr Sithanen also reviewed the financial situation  and expressed satisfaction that measures taken in the 2008/2009 budget are bearing fruits. However, he advises caution and prudence “even though  economic indicators are forecasting good performance and that economic operators are in a confident mood to continue business.”