President Wavel Ramkalawan chaired a scheduled meeting of the Cabinet today, Wednesday 25th May at which a number of policy memoranda were considered.

Cabinet approved two measures which aim to promote financial stability and increase resilience to adverse shocks in the financial sector.

As a first measure, Cabinet approved the Financial Stability Framework which will be implemented under a law. A Financial Stability body will be set up comprising regulatory authorities in the financial sector. Its role will be to monitor the financial system; identifying risks and vulnerabilities and taking appropriate actions to reduce those concerns.

Secondly, Cabinet approved amendments proposed by the Central Bank to the definition of banks’ capital, in line with the international standard known as Basel III. Capital provides protection to depositors and other creditors, by acting as a buffer that absorbs losses, therefore reducing the probability of a bank failure.

Cabinet approved the framework for undertaking the World Trade Organisation Trade Policy Review. Seychelles has been a member of the WTO for seven years and is now in the process of reviewing its trade policy. A high-level technical working group will be set up to drive and guide the process. This is important to ensure compatibility with the laws and rules of WTO as well as adherence to the commitments undertaken upon accession to WTO.

Further details to the media will be provided by the relevant Ministry.