The Bank of Mauritius specifies that the balance of “Rs 28 billion” is not a “loan” and will not impact the public debt. The press release was issued on Monday.
The Bank of Mauritius specifies that following a press article, it provides the following clarifications:
During the financial year 2020/2021, the bank transferred Rs 60 billion to the government. Rs 32 billion was “charged to the Special Reserve Fund”. The remaining Rs 28 billion is an ‘advance against future profits’ which must be distributed to the government. Therefore, the BOM goes on to say that this sum is not a loan and will therefore have no impact on the public debt. The Bank of Mauritius concludes by saying that any information to the contrary is ‘misleading.’
Here is the Press Statement of the BOM:
Following the article that appeared in the local media on Monday 14 June 2021, the Bank would like to bring the following clarification –
- In the financial year 2020/21, the Bank transferred Rs 60 billion to Government in line with Section 6(1)(oa) of the Bank of Mauritius Act.
- According to the public notice issued on 07 May 2021, the contribution is recorded in its books as follows:
- Rs 32 billion charged to the Special Reserve Fund; and
- The remaining balance of Rs 28 billion reckoned as advance against future profits of the Bank distributable to Government.
- It is to be highlighted that the remaining balance of Rs 28 billion will be amortised against future profits in the books of the Bank itself, and is not a loan to Government, and hence will have no impact on public sector debt.
- Any information being disseminated contrary to the above is, therefore, misleading.
