President James Michel’s speech for the 17th National Day: Major measures to bring better quality of life
In his National Day speech at the Stad Linite, he said the Seychelles Public Transport Corporation (SPTC) will cut its bus fare from R7 to R5 on July 1.
He said this reduction “reflects the intensive work we have been doing for over a year to have a pricing structure that makes this fare reduction possible”.
“We have this reduction thanks to donations from friendly countries and also as a result of big improvements in the efficiency of SPTC operations,” said Mr Michel.
“We will continue to work for more improvement in the bus service. We must remain conscious of the fact that the bus fare is inevitably determined by the price of fuel on the international market, and we pray that the world does not again suffer the kind of fuel crisis that it experienced in 2008.”
The President said he has been greatly concerned about the reticence of the commercial banks to bring down their rates of interest on credit. So the government has opted to play the role of facilitator to redynamise our economy and to accelerate growth.
“I cannot wait any longer, and I am taking action to inject oxygen into our economy,” he said.
“Financial institutions in which government is the majority shareholder are reducing interest on loans at all levels. The Development Bank of Seychelles will reduce its interest rate from 10% to 8.5% as from September 1, which will be made possible because of two new bonds to be issued by the bank.”
These bonds will offer innovative options for investors and have many advantages as they will be guaranteed by the government, Mr Michel added.
He also said the Housing Finance Corporation will lower its interest rate from 7% to 6%. As is the case with the DBS, the government will also guarantee HFC loans.
The President said he has taken measures to ensure that interest rates at the Seychelles Savings Bank and Nouvobanq are reduced as well. Housing loans, for example, will come down to 7% on average, and all other loans will be offered at rates not exceeding 10%.
“I am very confident that this initiative will help individuals, as well as businesses big and small, to have access to credit facilities that offer more favourable terms. And this is what will enable our economy to continue growing,” said Mr Michel.
He then announced that the education sector will be further improved through a programme to invest in information technology (IT) resources. This will be made possible through an active partnership with a friendly country.
The government will also put in place a special project, estimated to cost R30 million this year, to upgrade the hospitals and the health system in general.
“This investment will complement the gradual reform in the health sector and is part of our overall vision to ensure that the Seychellois people enjoy a higher quality of life from the level of services they receive,” he said.
“In this context, I repeat again that our most important resource is our human resource. We continue to give our full support to the health employees who are on duty day and night, working for the wellbeing of their compatriots.”