07.05.10

IMF releases USD 3.3 million after economic reform appraisal

Posted in Business and Economy, International Organisations, Seychelles government at 11:08 am by Robert Klien

Seychelles’ economic reform programme has been praised and it received a major boost in front of week’s Paris Club meeting of international lenders.

The International Monetary Fund (IMF) made issued a press release to praise the ongoing results of the economic programme. The IMF said that Seychelles’ economic policies “continue to be anchored by prudent fiscal policies”.

As a result of this, the jurisdiction qualifies for another installment of USD 3.3 million as part of the 3-year Extended Fund Facility arrangement (EFF). This announcement was made after the IMF’s executive board completed the 1st review of Seychelles’ economic performance, bringing the total amount of disbursements under the EFF to USD 7.8 million.

According to the IMF, the economy of Seychelles has proved remarkably resilient to the recently-experienced double crisis. The IMF said: “Following a turnaround in its economic policies to address an external debt crisis and a global financial crisis in 2008, the country appears to have emerged from the recession”. It was added that real gross domestic product (GDP) rose by 0.7% in 2009, and growth is projected to recover further to 4% in 2010.

In accordance with the press release, Seychelles’ government revenue is exceeding expectations in 2010. It said: “The authorities have also strengthened public finance and central bank management and are starting to address the restructuring of several key public enterprises and financial institutions, with a view to reducing the risks to the government budget and fostering sustained private sector-led growth.”

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