SMEs struggling to pay back loans, call for extension

Small and Medium Enterprises have urged the Ministry of Finance to consider extending the moratorium for loan repayments, look into rising transport costs and creating industrial zones.

A good chunk of these business had already been badly hit by the two COVID-19 lockdowns and related effects. The Russia-Ukraine war, it is said, has further disrupted recovery plans.

SME Federation President Amar Deerpalsing was cited by Le Mauricien as telling the pre- budget consultative meeting with the Minister of Finance that SMEs should be helped as they contribute around 40% to the GDP, representing Rs150 billion.

Reacting to the call, Finance Minister Renganaden Padayachy said the country has suffered losses of some Euros 3billion, mainly due to drop in tourism arrivals.

Nonetheless, he said he will look into the proposals and “take into consideration as many recommendations as possible in the next budget.”