10.20.06

Restoring Seychelles Credit with World Bank

Posted in International Organisations, Seychelles offshore jurisdiction at 2:54 pm by Robert Klien

On October 6, 2006, the Seychelles cleared all overdue payments to the International Bank for Reconstruction and Development (IBRD) also known as the World Bank.

Accordingly, all IBRD loans to the Seychelles or the ones guaranteed by the Seychelles have been restored to accrual status. Also, the Seychelles’ eligibility for new operations as well as for project preparation facility advances, disbursements under existing loans, Institutional Development Fund and other grants has been reinstated, which is subject to standard lending terms and conditions of the International Bank for Reconstruction and Development.

The Seychelles arrears to the World Bank amounted to around USD 770 thousand, about USD 631 thousand of which was overdue principal payments. As far as the Seychelles’s exposure to the International Bank for Reconstruction and Development is small, clearance of these arrears will increase net income of IBRD by less than USD 1 million in fiscal 2007.

Restoring credit is an essential step for the Seychelles in its program of economic reform.

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