08.08.09
Budget support and economic governance reform program approved for Seychelles
The African Development Bank has approved 15 million loan for Economic Governance Reform Program in Seychelles (EGRP), which will facilitate reform implementation, macroeconomic stability and growth, rebalance the economy and improve economic and financial governance.
This is the first budget support operation of the Bank in the Seychelles, which is expected to give the following results: improved budget formulation process and execution; reinforced budget oversight and transparency; improved efficiency and transparency in public procurement; improved public debt management and business climate. It will support government’s macroeconomic and financial reform program for years 2009-2010, in particular, the public finance management changes which will provide for the transparent and efficient management of public resources.
One of the purposes of the program is to increase the role of the private sector as a driver for development, and to create growth and employment opportunities within it.
The Bank Group’s budget support program and the loan is guided by a number of studies, among them the 2009-2010 Seychelles Interim Strategy Note, the 2008 Country Project Portfolio Review Report (CPPR) for Seychelles, the IMF Article IV Consultation and a Standby Arrangement Staff Report (2008), the IMF report “A Strategy for Strengthening Budget Management (2008), the EC-financed 2008 “Seychelles Public Financial Management Performance Report”, and UNECA 2007 report on the “State of Good Governance in the Republic of Seychelles”.