Bank applications rejected, fears of new wave of business closures

Hundreds of applications for banking (and loan) facilities from entrepreneurs have reportedly been rejected by local banks, l’Express reported.

It said the lack of finances and credit facilities to these entrepreneurs could trigger a wave of business closures.

“They are being left without support, which is being severely criticized,” it said.

According to latest figures from the Bank of Mauritius, some 385 businesses were refused bank or credit support.

Maya Sewnath, president of the SME Chamber, denounced the stringent procedures and the rejected applications, despite the existence of numerous bank schemes.

“Entrepreneurs respect payments like tax, among others, and contribute to the economy. We need to have a suitable scheme with flexible criteria, particularly in this period of COVID-19, to help them recover,” she said.