Financial Sector Infrastructure Project

closed

The Financial Sector Infrastructure Project, will provide the essential financial system infrastructure to facilitate domestic transfer of funds, while simultaneously support the introduction of payment versus payment, and delivery versus payment mechanisms, and, contributes to eliminate the foreign exchange settlement risk in cross border payments. The two main components are: 1) The introduction of modernized payment mechanisms, the Real Time Cross Settlement (RTGS) system, with the associated real time cash management support functions of the Bank of Mauritius (BOM), the Ministry of Finance (MOF), and commercial banks, to optimize liquidity without risking credit, or adverse monetary policy implications, while providing also support to the legal, and regulatory framework set-up for the RTGS system operation. In addition, cash management services to the MOF, and commercial banks will be introduced, settlement funds from bank reserves on deposit with the BOM will be ensured, and, a delivery versus payment settlement mechanism will be provided. Sub-components include provision of computer based application software systems, telecommunications equipment, and support during the implementation stages. 2) The component will identify the Government's risk priorities, and constraints on debt, and cash management, implement the development plan as identified, and, prioritize development activities.